India's gold demand dips 5% to 149.7 tonnes in June quarter on high prices: WGC

India's gold demand declined 5% in Q2 2024 due to high prices, but value increased 17%.

India's gold demand declined 5% to 149.7 tonnes during the June quarter, due to record high prices, the World Gold Council (WGC) said in a report on Tuesday.

The gold demand stood at 158.1 tonnes during the corresponding quarter of the previous calendar year, WGC's 'Q2 2024 Gold Demand Trends' report said.

However, in value terms, gold demand increased 17% during the second quarter at ₹93,850 crore, compared to ₹82,530 crore in the same period of the previous year.

Prices during the April-June quarter soared, with the cost of 24-carat gold crossing ₹74,000 per 10 grams.

The average price of gold during the April-June period in U.S. dollar terms was $2,338.2, compared to $1,975.9 in the same period of 2023. The average quarterly price in rupee terms was ₹62,700.5, compared to ₹52,191.6 in the same period last year (excluding import duty and GST), WGC said.

"India's gold demand softened slightly in the second quarter of 2024, reaching 149.7 tonnes, down 5% year-on-year. This can be attributed to record-high gold prices impacting affordability and causing a slowdown in consumer purchases. However, the overall value of demand remained strong, increasing by 14%, highlighting gold's enduring value for Indian consumers," said Sachin Jain, WGC Regional CEO, India.

Further, the report said the total jewellery demand in India declined 17% to 106.5 tonnes during the quarter compared to 128.6 tonnes in the corresponding period of the last year.