India's Gold Demand Drops Amid Record Purchase Value

India's gold demand declined by 6% to 131.4 tonnes in Q2, but the value of purchases hit a record Rs 1,98,100 crore due to high prices.

The World Gold Council noted that jewellery demand fell 15% to 75.1 tonnes, while bar and coin demand increased 9% to 50.3 tonnes. Gold ETF demand also rose 49% year-on-year to 4.2 tonnes.

The WGC expects the festive season to support demand, although elevated prices and a weak monsoon could remain headwinds. It estimates India's full-year gold demand at 650-750 tonnes.