India’s gold demand up 19% in April-June quarter at 76 tonne: World Gold Council

India’s gold demand elevated by 19.2 per cent to 76.1 tonne throughout the April-June quarter this yr, largely because of low base impact, owing to the nationwide lockdown that hit financial exercise final yr, the World Gold Council (WGC) stated in a report.
The total gold demand throughout the second quarter of 2020 calendar yr stood at 63.8 tonnes, based on the WGC’s ‘Gold Demand Trends Q2 2021’ report.
In worth phrases, India’s gold demand witnessed 23 per cent progress throughout April-June quarter at Rs 32,810 crore, in comparison with Rs 26,600 crore throughout the corresponding interval of 2020.
However, demand plunged 46 per cent quarter-on quarter because the second wave of COVID-19 hit the nation, based on the report.

“Demand in H1 totalled 157.6 tonnes, which was 46 per cent below H1 2019, and 39 per cent lower than the H1 average from 2015-2019,” the WGC information said.
“The second quarter of 2021 was marked by widespread regional lockdowns following an increase in COVID infections. Unlike the earlier yr when a nationwide lockdown took companies without warning, this quarter was comparatively higher as companies had been extra ready.
“Demand in Q2 2021, showed a 19.2 per cent year-on-year increase on a very low base of Q2′ 2020, the impact was, however, severe as it muted demand during Akshaya Tritiya and wedding season in Q2,” WGC Regional CEO, India, Somasundaram PR advised PTI.
Total jewelry demand throughout the second quarter was up by 25 per cent at 55.1 tonne, in comparison with 44 tonnes in the identical quarter final yr, the report stated.
In worth phrases jewelry demand was up by 29 per cent at Rs 23,750 crores in comparison with Rs 18,350 crore within the corresponding interval final yr.
Total funding demand throughout the second quarter elevated by 6 per cent within the nation at 21 tonnes compared with 19.8 tonnes throughout April-June 2020.
Gold Investment demand in worth phrases went up by 10 per cent at Rs 9,060 crore, towards Rs 8,250 crore in the identical quarter of 2020.
Total gold recycled in India throughout the second quarter was 19.7 tonnes in comparison with 13.8 tonnes in April-June 2020, a rise of 43 per cent.
Gold imports in India surged to 120.4 tonnes throughout April-June quarter, as in comparison with 10.9 tonnes in Q2 2020, based on the WGC information.
Somasundaram additional famous that the digital options and pause in restrictions in some pockets helped a progress of 25 per cent in jewelry demand, to 55.1 tonnes.
“Investment demand grew 6 per cent to 21 tonnes as prices softened. Interestingly, as imports surged to 120.4 tonnes in anticipation of pick up in fabrication. Overall, gold demand in India in H1 2021 was 216.1 tonnes, up 30 per cent versus H1 2020,” he added.
Though it’s nonetheless a multi-year low, it displays an underlying demand momentum that may seemingly help a pointy spike in demand as soon as normalcy is restored on the COVID entrance, he opined.
Going ahead, he stated, demand is anticipated to return again in an enormous means, nevertheless, the patron confidence and enterprise response are topic to the affect of a looming menace of third wave of COVID and the tempo of financial restoration.
“One view, most comforting, is that given the pace of vaccination and the sero survey results, as a society, we may learn to live with COVID and its variants, ensuring businesses and sales become more resilient,” he identified.

Dhanteras and the upcoming season, which has extra auspicious marriage ceremony days in This autumn 2021, in comparison with the earlier yr seem constructive for demand, stated Somasundaram.
“For the gold investment segment, however, attractive equity markets and volatile gold prices are strong headwinds. Consumer behaviour is linked to several economic and non-economic variables that pose great difficulty in making any forecast of full year gold demand in India,” he added.