Indian Gold Demand Plummets Amid Seasonal Weakness and Higher Duties

India's gold demand fell by 6% in the April-June quarter to 131.4 tonnes, according to a report from the World Gold Council (WGC). The decline was due to weak seasonal sales, higher Customs duty, and Prime Minister Narendra Modi's appeal to reduce non-essential gold purchases.

Although demand decreased, the value of demand actually rose by 50% year-over-year to Rs 1,98,100 crores. WGC Regional CEO, India, Sachin Jain noted that consumers continue to prioritize gold even in a high-price environment.

Total jewellery demand in India fell by 15% to 75.1 tonnes during the quarter under review. Jain attributed this decline to subdued seasonality and the Prime Minister's call for reduced gold purchases.