India's festive season Gold demand almost halved

Mumbai-India (Sept 27)  Normally the Gold demand and buying in India increases ahead of festive season and now ahead of the forthcoming Diwali festival the demand of the commodity almost halved.

 The traders in the country are blaming the change to the country's anti-money laundering rules for weak sales ahead of next month's peak Diwali festival demand.

 In the last five years, the gold buying in the Indian households accounts for about one quarter of the total. The Know Your client rule which was launched on late August this year requires people to give their tax-code I.D. when buying more than 50000 Rupees of gold down from a previous floor of Rs 200000.

“There were very little footfall in jewellery exhibitions that took place in the last fortnight,” Surendra Mehta, national secretary at the India Bullion & Jewellers Association quoted.

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