India’s love for gold may have to make room for some restraint this festive season. Prime Minister Narendra Modi on September 1 urged people to buy the yellow metal only when necessary, a message that could carry some weight with consumers.
Against the backdrop of the West Asia war, Modi had made a similar appeal in May, urging Indians to refrain from gold purchases for a year, citing the extensive use of foreign exchange on them.
Festive gold sales could fall 10–12% after the Prime Minister’s latest appeal, Surendra Mehta, National Secretary of India Bullion & Jewellers Association (IBJA), told ET Online .
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According to Mehta, as a "big influencer," the Prime Minister's appeal is bound to sway consumer sentiment. “And if domestic demand softens to that extent, India's gold imports are likely to trace a matching 10% to 12% decline.”
