Gems & Jewellery Export Promotion Council (GJEPC) on Tuesday said gold may stabilise or correct marginally if US-China trade war reaches a tariff settlement.

In an interview to CNBC-TV18, Colin Shah, vice chairman, said, "Historically and even in the last four weeks, whenever gold prices go up, demand does get subdued as the consumer in India and globally tends to wait. Consumers hope that the gold prices will correct a little bit and then they can go and buy their wedding jewellery or anniversary gift or whatever jewellery they wish to buy."

"Right now in the short term, we do see a dip in walk-ins. But if it stabilises at this level, then buying will start again. At a macro level, it is good for consumers in India and globally when they see gold going up as they think it is a good investment. If it stays stagnant or it comes down, that is also not very good for business. So, if it stays stable at this level, then the consumer will be back in the next couple of months,” Shah said.

On gold exports, he said, "Exports are down as we have a lot of gems and jewellery sector-specific issues which are more related to India. One is the high import duty that we have on polished diamonds which has gone up from 2.5 percent to 7.5 percent. So, that is having an impact on the trading business which is a big chunk of our business in India.”