India is the world's second-largest gold consumer, and a drop in purchases could limit a rally in global prices .
Local gold prices jumped this week to 61,396 rupees per 10 grams, near the all-time high of 61,845 rupees hit earlier this year.
In the December quarter, demand is expected to be lower than last year's 276.3 metric tons, Somasundaram said.
From January to September, gold demand fell by 3.3% to 481.2 metric tons due to sluggish demand in the first half.
In 2023, demand could fall to around 700 metric tons, the lowest in three years, down from 774.1 metric tons a year ago, he said.
Persons:
Anushree, Somasundaram, Rajendra Jadhav, Miral
Organizations:
REUTERS, Rights, Gold Council, PR, Thomson
Locations:
Delhi, India, Rights MUMBAI