Gold demand rises 43% in Q2

Mumbai: India's gold demand went up by 43 per cent during April-June quarter, but going ahead factors like inflation, Rupee-USD rates and policy measures among others are likely to influence consumer sentiments, says a report.

According to a World Gold Council (WGC) report, India's April-June quarter gold demand stood at 170.7 tonnes, higher from 119.6 tonnes during the corresponding quarter in 2021. In terms of value, India's gold demand increased by 54 per cent during the second quarter to Rs 79,270 crore, compared to Rs 51,540 crore in the corresponding quarter of 2021, the WGC Gold Demand Trends Q2 2022 report said on Thursday.

"Akshaya Tritiya coupled with traditional wedding buying spurred jewellery demand by 49 per cent to 140.3 tonne, though on a low base, as the second quarter of last year was impacted by a devastating second wave of COVID," WGC Regional CEO, India, Somasundaram PR told PTI. Going forward, he said, for the full 2022 WGC has kept the demand outlook at 800-850 tonnes, but at the lower end of the range as factors like inflation, gold price, Rupee-USD rates and policy measures among others influence consumer sentiments.

The total demand in 2021 was 797 tonnes, he said. "The second half of this year jewellery demand in India faces downside risks, due to uncertainty over the economic outlook, a higher import duty and the possibility of additional curbs on gold buying, even if for temporary and tactical reasons with an eye on Indian Rupee and USD exchange rate," he noted.

Upside potential for demand can come from expectations of a normal monsoon, higher inflation and the possibility for range-bound prices, he added.