India's Q1 gold demand declines 18% to 135.5 tonnes amid higher prices: WGC

Prices began rising in January, increasing by 8% to ₹45,434 per 10 grams (without taxes) in the first quarter of this year, mainly due to geopolitical tensions

India's gold demand declined 18% to 135.5 tonnes in the first three months of this year, mainly due to a sharp rise in prices, according to the World Gold Council (WGC).

The demand stood at 165.8 tonnes in the first three months of 2021.

In terms of value, gold demand dropped 12% to ₹61,550 crore in the January-March period. It stood at ₹69,720 crore in the year-ago period, the 'Gold Demand Trends Q1 2022' report released by the WGC said.

WGC Regional CEO, India, Somasundaram P. R. told PTI that gold prices began rising in January, increasing by 8% to ₹45,434 per 10 grams (without taxes) in the first quarter of this year, mainly due to geopolitical tensions.

In comparison, the prices were at around ₹42,045 crore in January-March 2021 period.

As per the report, total jewellery demand in the country during the latest March quarter fell 26% to 94.2 tonnes. It was at 126.5 tonnes in the same period last year.

In terms of value, jewellery demand plunged 20% to ₹42,800 crore in the first quarter of this year. The same was at ₹53,200 crore in the year-ago period.