Indian Gold Demand Falls 6%, Value Surges 50% in Q2

India's gold demand took a hit in Q2, declining by 6% year-over-year to 131.4 tonnes due to elevated prices that weighed on jewellery purchases.

The sharp rise in gold prices pushed the value of purchases to a record Rs 1.98 lakh crore, despite investment demand through bars and coins remaining relatively resilient amid ongoing economic and geopolitical uncertainties.

The fall in volumes was primarily driven by weaker jewellery demand, with many consumers postponing purchases due to higher import duties and the 3% Goods and Services Tax (GST) increasing the cost of buying gold.

India's net gold imports fell 23% year-over-year to 98.1 tonnes during the quarter, marking the lowest quarterly import level since the pandemic-hit September 2020 quarter.