In the latest report of the World Gold Council (WGC), it is shown that Gold Jewellery demand in India for the third quarter ending September 2020 of the calendar year 2020 dropped a whopping 48 pc. As per the report, in the third quarter of 2019 the demand for gold jewellery was 101.6 tonnes as against the gold demand of just 52.8 tonnes in Q3 2020. "While China and India were major contributors to the global weakness, weakness was virtually universal, with no bright spots of note. Jewellery demand for the year to date totals just 904 tonnes, the weakest in our data series by some margin," the WGC has stated.

The WGC further stated: "This is 30 percent weaker than the equivalent period of 2009 - the next lowest Q1-Q3 total and the time of the Global Financial Crisis - when demand reached 1,291.7 tonnes. Although Q3 witnessed widespread recovery from the depths of the Q2 weakness, economies around the globe remained under the shadow of COVID-19 and this is reflected in the year-on-year figures for jewellery demand. The strong rally in the gold price - which reached record levels in almost all key currencies - further magnified the effect. Between January and end-September, the US-dollar gold price had increased by 25%,"

In India gold demand is expected to be a little better with the advent of the festive season and also following the opening of the lockdown. However, the price of gold continues to remain high.

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