India's gold imports could plunge in 2017 during the traditional period of peak demand in the second half of the year, after jewellers have aggressively restocked inventory ahead of a national sales tax that takes effect on July 1. Lower imports from the world's second-biggest consumer during its high-demand season could drag on global gold prices that have gained nearly 10 percent this year as political turmoil in the United States has raised expectations of a slower pace of interest rate hikes this year. India's gold imports typically strengthen in the second half of a year as the precious metal is considered an auspicious gift at weddings and festivals such as Diwali and Dussehra.
Asian Markets Listless, UK Blast Overshadows Trade
Gold is up nearly 10 percent this year and it might be primed for more gains.