India's Gold Demand Falls 6% Amid Elevated Prices and Higher Customs Duty

India's gold demand fell by 6% during the April-June quarter of this year, according to a report from the World Gold Council (WGC). The total gold demand stood at 131.4 tonnes during the quarter, compared to 139.7 tonnes in the same period last year.

Although the quantity of gold purchased declined, consumers spent more on the precious metal as prices remained elevated. The value of demand reached an all-time high, touching Rs 1,98,100 crores, a 50% increase from the same period last year.

The WGC's Regional CEO for India, Sachin Jain, attributed the decline in gold demand to seasonal weakness in jewellery purchases, higher Customs duty, and Prime Minister Narendra Modi's call to curb non-essential gold buying.