Gold Demand Hits Lowest Point Since Pandemic as Indian Jewellery Sales Plummet

The Indian demand for gold jewellery fell 15% year-over-year to 75 tonnes in Q2, while global demand dropped to its worst since the Covid pandemic. The World Gold Council (WGC) reported that the decline was driven by high prices, which led consumers to buy less gold and opt for lighter products instead.

Although jewellery demand fell, it saw a 14% quarter-over-quarter increase from a weak Q1. However, the first half of the year witnessed a 17% year-over-year decrease in demand to 141 tonnes, with a value rise of 26% Y-o-Y to $21 billion.

Global gold demand remained flat at 1,269 tonnes in the April-June quarter, according to the WGC. Central banks and official institutions added a net 289 tonnes to reserves during the period, up 62% year-over-year, driven by purchases from countries like Poland, China, and the Czech Republic.

WGC Senior Markets Analyst Louise Street noted that gold's early-year rally reversed in Q2, with prices consolidating after correcting from record highs. However, the market remained well-supported due to gold's established role as a diversifier and store of value.