China and India sees weaker gold demand off-late

Gold is currently trading lower than $1070 per troy ounce as the trading week comes to end, nearing its 6-year low, which was hit in last week. Gold, in Euro terms is priced slightly modestly over the EUR 1000 mark per troy ounce.

The All India Gems & Jewellery Trade Federation estimates that gold demand in India could decline to an eight-year low of 150-175 tons in the fourth quarter.

Imports in November and December put together will have to raise to 160 tons, which is significantly over the October level.

"We believe this is certainly possible given that imports in October were negatively influenced by the festival week at the start of the month and by what were at times sharp rises in gold prices", says Commerzbank in a research note.