India's gold demand fell 7% in April-June quarter due to record high prices: WGC

In Q2 2023, India's gold demand witnessed a 7% decline, amounting to 158.1 tonnes, attributed to soaring gold prices in the domestic market, which affected affordability and consumer sentiment, as reported by the World Gold Council (WGC). However, gold imports saw a significant 16% increase, totaling 209 tonnes, due to stocking activities. The WGC forecasts the first-half demand for 2023 at 271 tonnes, projecting the full-year gold demand to be in the range of 650-750 tonnes if current market conditions persist.

Jewelry demand dropped by 8% to 128.6 tonnes during Q2, except for 18k gold jewelry, which continued to experience growth due to its relative affordability. Gold bars and coins demand also experienced a slight 3% decline during the same period.

Despite uncertainties surrounding the market, the performance of the monsoon season could play a crucial role in influencing demand, especially leading up to the festive season of Diwali.

Amidst various challenges, India's gold market remains dynamic, and stakeholders closely monitor economic conditions and consumer behavior to anticipate future trends.

Content source: Media reports