India's Gold Demand Falls Despite Record Purchase Value

India's gold demand saw a decline of 6% in the second quarter of this year, but the value of purchases skyrocketed by 50% to reach a record Rs 1.98 lakh crore. This is according to a report from the World Gold Council (WGC). Despite historically high prices, consumers continued to buy gold.

The WGC expects festive demand and investment buying to support the market in the second half of this year. The value of gold purchases rose due to elevated gold prices. Jewellery demand fell 15% to 75.1 tonnes, while bar and coin demand increased by 9% to 50.3 tonnes.

The World Gold Council report states that consumers are increasingly shifting towards lighter-weight jewellery, lower-carat products, and exchange-led purchases to manage affordability. Investment demand remains supported by gold's appeal as a store of value. The WGC estimates India's full-year gold demand at 650-750 tonnes.