India's Gold Demand Drops Amid High Prices

India's gold demand experienced a decline of 6% during the April-June quarter compared to the same period last year, but the value of purchases reached an all-time high. The World Gold Council reported that India's total gold demand fell to 131.4 tonnes, while the value rose by 50% to Rs 1,98,100 crore due to elevated prices.

The decline in jewellery demand was significant, falling 15% to 75.1 tonnes, but bar and coin demand increased by 9% to 50.3 tonnes. Gold ETF demand also surged by 49% year-on-year to 4.2 tonnes. Consumers have been opting for lighter-weight jewellery, lower-carat products, and exchange-led purchases to manage affordability.

The World Gold Council expects the festive and wedding season to support demand, but elevated prices and a weak monsoon could remain headwinds. The council estimates India's full-year gold demand at 650-750 tonnes.