India’s gold demand dips 5% to 149.7 tonnes in April-June quarter on high prices: WGC

Mumbai: India’s gold demand declined 5 per cent 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.

However, in value terms, gold demand increased 17 per cent during the second quarter at Rs 93,850 crore, compared to Rs 82,530 crore in the same period of the previous year.

Prices during the April-June quarter soared, with the cost of 24-carat gold crossing Rs 74,000 per 10 grams.

The average price of gold during the April-June period in US 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 Rs 62,700.5, compared to Rs 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 per cent 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 per cent, 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 per cent 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 per cent 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 per cent 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 per cent more compared to 182.3 tonnes in the same period of last year.