India's Q2 gold demand falls 25%, says WGC

Source: PTI

India's gold demand during April-June declined 25% to 154.5 tonnes due to unseasonal rains in the first quarter that damaged crops and the shrinking of wedding dates, according to the World Gold Council (WGC). The demand during the second quarter of 2014 stood at 204.9 tonnes, WGC said in Gold Demand Trends report for Q2 2015. India's Q2 2015 gold demand in terms of value fell 26 per cent to Rs.37,590.2 crore compared with Rs.50,778.1 crore in Q2 2014. "Consumer demand in India fell 25% to 154 tonnes in the April to June quarter, due to a buoyant stock market, a softening rural economy affected by unseasonal heavy rains in Q1, which damaged crops and fewer auspicious days impacting wedding-related demand. "If, however, we look at the first half of the year, then the fall was only 7% to 346.2 tonnes compared with 372 tonne in the first six months of 2014,” WGC Managing Director, India, Somasundaram PR told PTI in Mumbai. Especially, small jewellers in tier II and III towns were affected due to this decline in consumer demand, he added. The demand, however, was robust during festivals like the Akshaya Tritiya, but people showed cautious approach towards gold expecting a weak monsoon, he noted. Total jewellery demand was down 23% at 118 tonnes compared with 152.6 tonne in the same quarter last year. The value of jewellery demand fell 24% to Rs.28,703 crore from Rs.37,807 crore in the corresponding period of 2014.

August 13, 2015 | 5:20pm IST.