India's Gold Demand Dips 6% in Q2 Amid Volatile Prices

India's gold demand fell 6% in the June quarter to 131 tonnes due to volatile prices, according to the Gold Demand Trend report by the World Gold Council. The demand for gold in value terms, however, increased 50% to ₹1.98 lakh crore compared to ₹1.32 lakh crore in the same period last year.

Jewellery demand plummeted 15% to 75 tonnes from 89 tonnes, but its value jumped 34% to ₹1.13 lakh crore (₹84,200 crore). In contrast, bars and coins saw a 9% increase in demand to 50 tonnes, with a value of ₹75,700 crore (₹43,700 crore).

Exchange traded funds rose 62% year-on-year in the June quarter to 4 tonnes, despite being down 82% sequentially compared to 20 tonnes logged in the March quarter. According to Sachin Jain, Regional CEO-India at the World Gold Council, consumers are buying gold as per their budget with falling prices from their highs in recent months.