India’s gold demand declined 5% to 149.7 tonnes during the June quarter, due to record high prices, the World Gold Council (WGC) said in a report on Tuesday.
The gold demand stood at 158.1 tonnes during the corresponding quarter of the previous calendar year, WGC’s ‘Q2 2024 Gold Demand Trends’ report said.Kanpur Investment
However, in value terms, gold demand increased 17% during the second quarter at ₹93,850 crore, compared to ₹82,530 crore in the same period of the previous year.Ahmedabad Stock
Prices during the April-June quarter soared, with the cost of 24-carat gold crossing ₹74,000 per 10 grams.
The average price of gold during the April-June period in U.S. dollar terms was $2,338.2, compared to $1,975.9 in the same period of 2023. The average quarterly price in rupee terms was ₹62,700.5, compared to ₹52,191.6 in the same period last year (excluding import duty and GST), WGC said.
“India’s gold demand softened slightly in the second quarter of 2024, reaching 149.7 tonnes, down 5% year-on-year. This can be attributed to record-high gold prices impacting affordability and causing a slowdown in consumer purchases. However, the overall value of demand remained strong, increasing by 14%, highlighting gold’s enduring value for Indian consumers,” said Sachin Jain, WGC Regional CEO, India.
Further, the report said the total jewellery demand in India declined 17% to 106.5 tonnes during the quarter compared to 128.6 tonnes in the corresponding period of the last year.
Total investment demand increased 46% in the second quarter at 43.1 tonnes in comparison to 29.5 tonnes in the same period of last year, said the report.
The WGC report further stated that recycled gold in India during the quarter under review dipped 39% to 23 tonnes, compared to 37.6 tonnes in Q2 2023.
Total gold imports in India during the April-June quarter were 196.9 tonnes, which is 8% more compared to 182.3 tonnes in the same period of last year.
Mr. Jain said jewellery demand felt the pressure of high prices, declining 17% to 107 tonnes due to high local prices, the general election and a severe heatwave.
“While festivals like Akshaya Tritiya and Gudi Padwa provided a temporary boost, record high prices continued to dampen consumer sentiment,” he added.Jaipur Investment
However, he said, investment demand surged 46% to 43.1 tonnes, its highest second-quarter level since 2014 driven by expectations of further price appreciation and safe-haven buying.
Bucking global trends, India’s gold recycling fell 39% to 23 tonnes, as consumers opted to exchange old jewellery for new rather than cashing inMumbai Investment. This indicates limited distress selling and highlights gold’s enduring role as a store of value in India, he noted.
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