That is true and the demand for gold has fallen to a 11-year low level at a time when the price of gold in India and the world is at all-time highs. That is not too surprising because India has traditionally been a price sensitive market and the recent rally in gold has made buyers extremely wary of buying fresh gold at these levels.

Even the World Gold Council or WGC admitted that they do not see demand for gold pick up in the near future. For the Jun-20 quarter, demand for gold was lower by 70% at just 63.7 tonnes. Needless to say, the lockdown hit jewellers badly and the high prices also hit jewellery demand. Jewellery demand, itself has fallen 73% on a YOY basis.