India's Gold Demand Softens Despite Record Spending

Gold prices remained historically high in Q2 of this year, despite easing from their peaks. The domestic market in India was supported by a mid-May import duty hike and INR depreciation, leading to a 59% year-over-year increase in gold prices.

The World Gold Council reports that Indian gold demand softened in Q2 to 131t, down 6% year-over-year but still reaching a quarterly record of INR1,979 billion (US$21 billion), up 50% quarter-over-quarter and 35% year-over-year.

Jewellery demand rebounded sequentially but fell year-over-year, growing 14% quarter-over-quarter to 75t. Investment demand moderated after a strong run, easing to 54t from an average of 100t over the preceding three-quarters.