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India’s quarterly gold demand shines by 39%

India’s quarterly gold demand shines by 39%
The overall third quarter demand in the country for 2013 stood at 161.6 tonnes, WGC Gold Demand Trends report showed. Gold demand during the period in terms of value rose by 31 per cent to
Rs 56,219.3 crore as compared to Rs 42,829.6 crore in the third quarter of 2013.

Similarly, the total jewellery demand was up by 60 per cent at 182.9 tonnes as against 114.5 tonnes in the same period last year.

The value of jewellery demand surged by 51 per cent to Rs 45,681.6 crore from Rs 30,346.5 crore in the third quarter of 2013.

‘The rise in demand for gold jewellery during third quarter of 2014 reflects the unusual low base of third quarter of 2013 that was impacted by the introduction of a range of duty increases and restrictions.

‘The third quarter can be viewed as normal for gold demand in spite of the unfulfilled expectations of a duty cut and policy relaxations from the new government,’ WGC Managing Director (India) Somasundaram PR said. He further said that demand around Diwali reflected the general optimism seen in the country.

‘It is now beyond debate that import restrictions have had little impact on demand for gold and yet have strengthened the unauthorised supply channels and seems at odds with the overall sentiment that defines the new government's business approach,’ he added.

Meanwhile, the global gold demand during the period declined marginally by 2 per cent to 929 tonne mainly due to reduced appetite towards jewellery, according to the World Gold Council. As per the latest Gold Demand Trends report from WGC, the overall demand during the corresponding quarter of last year stood at 952.8 tonne.

The overall jewellery demand from July to September 2014, softened by 4 per cent to 534 tonne compared to 556.3 in the same quarter last year.

In China, jewellery demand for Q3 2014 was down 39 per cent year-on-year, but was broadly in line with both Q3 2012 and the 5-year quarterly average (of 148.2 tonne and 154.9 tonne, respectively).

Whilst in the US and UK, jewellery demand was strong, buoyed by ongoing economic recoveries. In the US, jewellery demand grew 4 per cent to 34 tonne, the highest Q3 since 2009, and in the UK, jewellery demand had its fifth consecutive quarter of year-on-year growth. ‘This quarter, the market continued to find its feet after an exceptional 2013, with China catching its breath and buying in the build up to Diwali driving Indian jewellery purchases’, the report said.

PTI

PTI

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