Demand for Gold fell by seven per cent in the April-June quarter, according to a report by the World Gold Council (WGC). In terms of weight, this means that India used only 158.1 tons of gold in the April-June quarter, compared to the 170.7 tons used in the same quarter of the previous year.
According to the WGC report demand for jewellery also fell by eight percent to 128.6 tons, compared to the 140.3 tons used in 2022. In April-June or Q2 2023, the average gold price increased by 10 per cent from Rs 46,430 to Rs 52,191 per 10 grams.
There was a slowdown in investment and the RBI and other central banks also bought less gold. The gold demand value increased by four per cent to Rs 82,530 crore from Rs 79,270 in Q2 of 2023. The RBI bought only 10 tons of gold in the April-June quarter of 2023, compared to 15 tons bought in the same quarter of the previous year. RBI’s gold reserves stood at 797.4 tons at the end of June.
CEO of the Indian wing of WGC, Somasundaram PR says the drop in demand for gold was fueled by high rupee gold prices. However, he also added that a good monsoon can bolster buyers' and investors' sentiments ahead of festivals.
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