New Delhi: The World Gold Council (WGC) reported that India's gold demand in the June quarter dropped by 5 per cent to 149.7 tonnes, attributed to the exceptionally high prices. According to WGC's 'Q2 2024 Gold Demand Trends' report, the amount of gold requested was 158.1 tonnes in the same quarter of last year.
Nevertheless, the demand for gold in terms of value grew by 17 pc in the second quarter, reaching Rs 93,850 crore, up from Rs 82,530 crore in the corresponding period of the prior year. Prices surged in the April-June quarter, with the price of 24-carat gold surpassing Rs 74,000 for 10 grams. The mean cost of gold in US dollars for the April-June timeframe was USD 2,338.2, higher than USD 1,975.9 in the 2023 equivalent period. According to WGC, the average quarterly price in rupees was Rs 62,700.5, higher than last year's Rs 52,191.6 (not including import duty and GST).
India's gold demand in the second quarter of 2024 decreased slightly to 149.7 tonnes, a 5 pc decrease compared to the previous year. The reason for this is the high prices of gold, which are at a record level, making it less affordable and leading to a decrease in consumer spending. Sachin Jain, WGC Regional CEO in India, mentioned that the demand value remained robust and increased by 14 pc , emphasizing the lasting appeal of gold for Indian consumers.
Additionally, the report indicated that there was a 17 percent decrease in the total demand for jewelry in India, dropping to 106.5 tonnes in the quarter from 128.6 tonnes in the same period the previous year. The report stated that there was a 46 per cent increase in total investment demand in the second quarter, with 43.1 tonnes compared to 29.5 tonnes in the previous year. The WGC report also mentioned a 39 percent decrease in recycled gold in India during the quarter.
Contrary to worldwide patterns, India saw a decrease of 39 per cent in gold recycling to 23 tonnes, with consumers choosing to trade in old jewellery for new pieces instead of selling for cash. He pointed out that this shows minimal panic selling and underscores the lasting importance of gold as a safe investment in India.
In the upcoming July quarter, the 9 per cent decrease in gold import duty is anticipated to increase gold demand before the September festive season, possibly with additional help from a good monsoon. India's economic future also appears optimistic, as robust GDP predictions and the revival of the rural sector are expected to bolster demand in the latter part of the year. Jain stated that our prediction for total annual demand ranges from 700 to 750 tonnes.
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