India's Gold Demand Plummets 6% Amid Seasonal Slump

India's gold demand dropped 6% in Q2 to 131.4 tonnes, due to weak seasonal sales and higher customs duty.

The World Gold Council (WGC) reported that total gold demand fell from 139.7 tonnes in the same period last year.

Despite this decline, WGC Regional CEO Sachin Jain noted that the value of demand reached a record high, with Rs 1,98,100 crores in consumption compared to Rs 1,32,500 crores in the same period last year.

Jain attributed the decrease in gold demand to Prime Minister Narendra Modi's appeal to reduce purchases and the hike in Customs duty. However, he expressed concern about a rise in grey marketing after the duty increase.