Gold Demand Down, but Value Surges in India Amid Soaring Prices

The World Gold Council's latest report revealed that gold demand in India fell by 6% to 131.4 tonnes in Q1, but the value of purchases surged 50% due to soaring prices.

Elevated gold prices led to a decline in demand volumes, resulting in a total consumption decrease from 139.7 tonnes in the same period last year. However, consumers spent significantly more on the yellow metal, with the total value of purchases rising by 50% to Rs 1.98 lakh crore.

The report noted that jewellery demand fell by 15% to 75.1 tonnes from 88.8 tonnes a year ago, while investment demand remained resilient. Demand for gold bars and coins rose by 9% to 50.3 tonnes, with the value of such purchases surging 73% to Rs 75,750 crore.