The World Gold Council has said that it believes that the demand for gold is likely to remain strong in India, which is the largest consumer of the shiny metal, during the second half of the year.

World Gold Council (WGC) chief executive Aram Shishmanian said that the demand is expected to remain strong despite high purchases during the first half of the year because of likelihood of good monsoon rains that increase farmer income and demand for gold. Stable demand is important for the market as confidence in the gold investment is falling as investors find other avenues for investment and this indicates that the price of gold might fall further in the year.

Gold prices have faced the pressure in the market due to heavy selling in the global markets Gold prices have fallen 20 per cent so far this year and if the market today closes down, it would be the eight straight day of fall and would match the fall longest period of fall since March 2009. The gold prices are falling both in domestic as well as international markets.

Shishmanian said, "Based on all the indications, including consumer analysis that we have done, we believe the level of demand that existed last year will continue during the next half. Which means the doubling of demand in the June quarter will not even out demand in rest of the year. There would be net increase in the demand this year."