India's gold consumption is expected to rise further in 2022 after jumping 79% last year as pent-up demand and an improvement in consumer confidence are seen boosting retail jewellery sales, the World Gold Council (WGC) said on Friday.
Gold consumption in 2022 will likely be 800-850 tonnes versus 797.3 tonnes last year, the highest in six years, Somasundaram PR, regional chief executive officer of WGC's Indian operations, told Reuters.
Indian demand has averaged 769.7 tonnes over the last 10 years.
A rise in consumption by the world's second-biggest gold consumer would help global prices, but could widen India's trade deficit and put pressure on the ailing rupee.
"Muted wedding celebrations due to restrictions mean more savings and that money is flowing into gold," Somasundaram said.
Indian authorities imposed various restrictions on wedding celebrations due to the coronavirus outbreak and some people postponed weddings until 2022, he said.
Gold is an essential part of the bride's dowry in India and also a popular gift from family and guests at weddings.