By Paul Ploumis 13 Aug 2015 Last updated at 06:23:14 GMT
The gold demand in India dropped 25% during April-June '15, says WGC in its latest Gold Demand Trends Report
MUMBAI (Scrap Monster): Gold demand has fallen by 25% in India during the three-month period from April to June this year, said World Gold Council (WGC) in its latest Gold Demand Trends Report. The report also says that global demand for the yellow metal hit six year lows during the quarter, dropping nearly 12% year-on-year.
The Indian gold demand during the second quarter of 2015 totaled 154.5 tonnes as against the demand of 204.9 tonnes during the same quarter last year. In value terms, India’s gold demand fell by 26% from INR 50,778.10 crore during Q2 2014 to INR 37,590.2 crore in Q2 this year.
WGC attributes several key reasons for the sharp decline in country’s gold demand. The unseasonal rains that lashed across the country had damaged crops, thereby resulting in major drop in rural income. Secondly, the mentioned quarter in 2015 had lesser number of auspicious dates, thereby reducing the number of weddings during the period. In addition, gold also lost at least some sheen as an investment bet due to falling prices and rising equity market scenario, WGC noted.
The Indian gold jewellery demand during the second quarter of 2015 totaled 118 tonnes as against the demand of 152.6 tonnes during the same quarter last year. In value terms, India’s gold jewellery demand dropped 24% from INR 37,807 crore during Q2 2014 to INR 28,703 crore in Q2 this year.
The gold investment demand witnessed sharp slide of 31% during Q2 2015. The investment demand fell from 52.3 tonnes in Q2 last year to 36.5 tonnes this year. The value of gold investments saw year-on-year decline from INR 12,971.1 crore to Rs 8,887.2 crore during the quarter.
The half-yearly gold demand in the country fell by 7% to 346.2 tonnes, when matched with 372 tonnes during the initial six months of 2014.
The ‘WGC Gold Demand Trends Q2 2015’ report predicts 25%-30% year-on-year rise in gold demand during second half of the year. The full year gold demand expectations are likely to range between 900 tonnes-1,000 tonnes, with strong bias towards the lower range.