The global economic crisis will continue to drive the demand for gold and silver worldwide. Bullion experts at the India International Gold Convention (IIGC) organized by Foretell Business Solutions Ltd. unanimously expressed that global demand will continue to remain strong, and price higher. Ultra-low real interest rates in the USA and elsewhere will continue to drive the demand for both the metals globally. Gold is expected to remain above $1270 per ounce, while silver will continue to remain above $17 per ounce in London market.
"In India, demand will pick up in the second half of calendar 2016 after a dismal first half. High unofficial imports, high price, imposition of excise duty and subsequent strike by jewellers had impacted the demand of gold in the first half. Demand is expected to come back and price discounts expected to narrow from October. The overall demand is expected to remain around 380 to 400 tons for second half of calendar 2016 on account of increase in farmers' incomes, salary arrears to central government employees under 7th Pay Commission and festive demand.