7% drop in Q1 gold demand
Record high prices in domestic market keep pressure on buyers: WGC
Gold futures fall as speculators slash positions
New Delhi Gold demand in India, the world’s second-largest consumer, declined by seven per cent to 158.1 tonnes during the April-June quarter of this year in reaction to record high prices in the domestic market, according to the World Gold Council (WGC).
However, gold imports saw a 16 per cent jump to 209 tonnes during Q2 of 2023, from the year-ago period on account of stocking, WGC said in its latest report released on Tuesday. With the first half of 2023 demand estimated at 271 tonnes, the full-year gold demand could be in the range of 650-750 tonnes in 2023, it added.
“The seven per cent decline in Q2 gold demand is due to prevailing record high gold prices, which significantly impacted affordability and consumer sentiment,” WGC India Regional CEO Somasundaram PR told PTI.
There was a sharp rise in yellow metal prices in a very short span of time to a peak of Rs64,000 per 10 gram. Also, some demand got shaved off due to the overall tax compliance in the country, he said.
As per the WGC report, the country’s gold demand dropped by seven per cent to 158.1 tonnes in Q2 of this year, from 170.7 tonnes in the year-ago period.
