Poorer monsoon season in India could weigh on gold demand there

According to the meteorological office in India, the monsoon season there may prove somewhat weaker than previously anticipated. 

It is expected in any case to fall significantly short of the long-term average, making 2015 the driest year in six years. 

"This would have a negative impact on the income of the rural population, which lives mainly off agriculture, and would thus also have negative consequences for gold demand in India, for 70-80% of Indian gold demand stems from the rural population. If the forecasts turn out to be correct, Indian gold imports are also likely to be subdued", says Commerzbank.