Gold Prices Dampen Indian Jewelry Demand Amid Global Decline

The World Gold Council reported that India's jewelry demand decreased by 15% in Q2 of this year, reaching 75 tons. Although there was a slight increase from the previous quarter, high gold prices made consumers opt for lighter pieces instead.

The first half of the year saw an overall decline in jewelry volume. Despite this, the value of India's jewelry market rose by 26% to $21 billion in the same period, driven by higher gold prices.

Globally, jewelry demand dropped to its lowest since the pandemic. Meanwhile, central banks increased their gold reserves, and mine production rose despite a decrease in recycling.