'India’s demand for gold up 43% in June qtr as economy recovers'

MUMBAI: Coming out of the grip of economic slump brought in by the coronavirus pandemic, India’s gold demand for the second quarter (April-June) increased by 43 per cent compared to the corresponding quarter last year, revealed the latest report by World Gold Council.

Value-wise India’s second quarter (Q2) 2022 gold demand value was Rs 79,270 crore, an increase of 54 per cent in comparison with Q2 2021 (Rs 51,540 crore).

Total jewellery demand in India for Q2 2022 was up by 49 per cent at 140.3 tonnes as compared to Q2 2021 (94 tonnes).

Globally in the jewellery sector, Q2 gold demand increased 4 per cent year-on-year to 453 tonnes, helped by a recovery in Indian demand, up 49 per cent compared with Q2 2021. The strong performance in India balances a significant decline of 28 per cent in China, where the market was dampened by Covid lockdowns that stalled economic activity and constrained consumer spending.

“India’s gold demand for Q2’ 22 left behind the anxiety caused by the pandemic in Q1 and marked by festivals and wedding buying, grew 43 per cent year-on-year (YoY) to 170.7 tonne. Akshaya Tritiya coupled with traditional wedding buying spurred jewellery demand by 49 per cent to 140.3 tonne, though on a low base as Q2 of last year was impacted by a devastating second wave of covid. Total jewellery demand for H1 (first half) reached 234 tonne which 6 per cent higher y-o-y. Gold investment that is, bar, and coin demand in Q2 was of 30 tonne which is 20 per cent higher y-o-y, whereas H1’ 22 demand of 72t at 11 per cent stronger y-o-y. Gold demand drew support from volatility in equity markets and inflation expectations,” stated Somasundaram PR, Regional CEO, India, World Gold Council.

The World Gold Council’s latest Gold Demand Trends report revealed that global gold demand (excluding OTC) in the second quarter was down 8 per cent year-on-year to 948 tonnes.

The gold prices increased from Rs 43,994 per 10 grams on March 31, as against Rs 46,504 per 10 grams on June 30, he said.

Total gold recycled in India in Q2 2022 increased 18 per cent to 23.3 tonnes, compared to 19.7 tonnes in the same period last year.

The quarter also witnessed 34 per cent growth in imports at 170 tonnes, compared to 131.6 tonnes in the same period in 2021.

Gold falls Rs 32; silver declines Rs 348

New Delhi: Gold in the national capital on Thursday fell Rs 32 to Rs 52,224 per 10 grams, according to HDFC Securities. In the previous trade, the yellow metal had finished at Rs 52,256 per 10 grams. Silver also declined Rs 348 to Rs 57,298 per kg from Rs 57,646 per kg in the previous trade. In the international market, gold was trading higher at $1,763 per ounce while silver was trading flat at $19.67 per ounce.