India implemented strict duties and quantitative restrictions on gold imports last year to cut down its current account deficit in response to a quickly depreciating rupee currency. The action subsequently helped China supplant India as the world’s largest gold consumer last year.
Indian consumers were also purchasing gold during the Diwali festival in October and demand is rising ahead of the traditional wedding season. [Asian Demand to Buff Tarnished Gold ETFs]
Nevertheless, the World Gold Council added that global demand was still 2% lower over Q3 and hovered around its lowest level in almost five year.
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