Gold Losing Its Shine? Demand For Precious Metal Tanks In India In June Quarter: WGC

The average price of the precious metal during the April-June quarter in reached Rs 62,700.5, against Rs 52,191.6 reported in the same period a year earlier

Gold demand in India tanked by 5 per cent during the April-June quarter in 2024, the latest report by the World Gold Council (WGC) revealed on Tuesday. The study showed that gold demand touched 149.7 tonne in the quarter ended June 30, 2024, against 158.1 tonne recorded in the same quarter a year earlier.

The ‘Q2 2024 Gold Demand Trends’ report by the WGC showed that in terms of value, gold demand surged 17 per cent during the June quarter to Rs 93,850 crore, as compared to Rs 82,530 crore clocked during the corresponding quarter last year, reported PTI.

During the quarter under review, the price of 24-carat gold surpassed Rs 74,000 per 10 grams. The average price of the precious metal during the April-June quarter in reached Rs 62,700.5, against Rs 52,191.6 reported in the same period a year earlier.

Why Is Gold Losing Popularity?

During the quarter, the domestic demand for gold eased a bit to 149.7 tonne, as surging prices affected the affordability for individuals and impacted purchases for the consumers. 

Explaining further, Sachin Jain, Regional CEO, WGC, said, “Jewellery demand felt the pressure of high prices, declining 17 per cent to 107 tonnes due to high local prices, the general election and a severe heatwave. While festivals like Akshaya Tritiya and Gudi Padwa provided a temporary boost, record high prices continued to dampen consumer sentiment.”

At the same time, Indians’ preference for gold remained strong as the overall value of the metal surged by 14 per cent during the period under review.

The overall demand for gold jewellery in the country sank 17 per cent to 106.5 tonne in the June quarter, against 128.6 tonne in the corresponding period last year.

Sharing an outlook for the metal’s demand, Jain said, “The recent 9 per cent reduction in import duty on gold is expected to revive the gold demand in the July quarter ahead of the main festive season that begins from September, which could be further boosted by a healthy monsoon. India's economic outlook too remains positive, with strong GDP forecasts and rural sector recovery are all likely to support demand in the second half of the year. Our forecast for full-year demand is between 700 to 750 tonnes.”