Higher gold prices and lesser availability of finance for jewellers will see jewellery demand growth weakening in 2018. Regulatory risks too will continue to dampen the demand.
In calendar year (CY) 2017, gold jewellery demand grew by 12 per cent in volume terms and 9 per cent in value. According to rating agency Icra, jewellery demand is expected to grow slower by 2-4 per cent this year. However, it has estimated growth in value terms during the year will be around at 5-7 per cent due to higher gold prices.