India's Gold Demand Falls 6% in Q2 Amid Seasonal Weakness and Duty Hikes

India's gold demand fell by 6% in the second quarter of this year, according to the World Gold Council. This decline was driven by weak seasonal sales, increased Customs duty, and Prime Minister Narendra Modi's appeal to reduce non-essential purchases.

The total gold demand for the April-June period stood at 131.4 tonnes, down from 139.7 tonnes in the same quarter last year.

Despite the volume drop, the value of gold demand surged by 50% to Rs 1,98,100 crores, indicating that consumers continue to prioritize gold even in a high-price environment.

Jewellery demand specifically fell by 15% to 75.1 tonnes, while investment demand for bars and coins grew by 9% to 50.3 tonnes.