Demand for imported gold may decline, reducing India’s trade deficit.

Indian demand for gold dropped 17% in the first quarter (March quarter) to its lowest level in ten quarters, and the World Gold Council (WGC) predicts that it will continue to be muted even in the second and third quarters despite record-high prices.

India’s gold imports decreased by 24.15% to $35 billion in 2022–2023 as a result of the uncertain global economy and a high import tax on gold.

Given that bullion is currently trading around all-time highs, the reduced Indian purchases could restrain a gain in world prices. Reduced demand for imported gold may also aid in reducing India’s trade imbalance and supporting the currency.

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