India’s gold demand in Apr-June qtr rises 43%: WGC

India’s gold demand went up by 43% during AprilJune quarter, but going ahead factors like inflation, RupeeUSD rates and policy measures among others are likely to influence consumer sentiments, says a report.

According to a World Gold Council (WGC) report, India’s April-June quarter gold demand stood at 170.7 tonnes, higher from 119.6 tonnes during the corresponding quarter in 2021.

In terms of value, India’s gold demand increased by 54% during the second quarter to ₹ 79,270 crore, compared to ₹51,540 crore in the corresponding quarter of 2021, the WGC Gold Demand Trends Q2 2022 report said on Thursday.

“Akshaya Tritiya coupled with traditional wedding buying spurred jewellery demand by 49% to 140.3 tonne, though on a low base, as the second quarter of last year was impacted by a devastating second wave of Covid-19,” WGC Regional CEO, India, Somasundaram PR told PTI.

Going forward, he said, for the full 2022 WGC has kept the demand outlook at 800-850 tonnes, but at the lower end of the range as factors like inflation, gold price, Rupee-USD rates and policy measures among others influence consumer sentiments.

The total demand in 2021 was 797 tonnes, he said.

“The second half of this year jewellery demand in India faces downside risks, due to uncertainty over the economic outlook, a higher import duty and the possibility of additional curbs on gold buying, even if for temporary and tactical reasons with an eye on Indian Rupee and USD exchange rate,” he noted.

Upside potential for demand can come from expectations of a normal monsoon, higher inflation and the possibility for range-bound prices, he added.

The gold prices increased from ₹43,994 per 10 grams on March 31, as against ₹46,504 per 10 grams on June 30, he said.

Total jewellery demand for April-June 2022 was up by 49 % at 140.3 tonne compared to 94 tonne in the same quarter of 2021. The value of jewellery demand jumped 60% to ₹65,140 crores during the quarter under review, from ₹40,610 crore a year ago.

While the total investment demand during the second quarter increased by 20% at 30.4 tonnes, in terms of value it was up by 29% at ₹14,140 crores compared to ₹10,930 crore in the same period last year.

Total gold recycled in India in Q2 2022 increased 18% to 23.3 tonnes, compared to 19.7 tonnes in the same period last year.

The quarter also witnessed 34% growth in imports at 170 tonnes, compared to 131.6 tonnes in the same period in 2021.