India’s Gold Demand Drops By 70 Percent In June Quarter On Coronavirus Disruptions: WGC

Gold demand in India plunged 70 percent during the April-June quarter to 63.7 tonnes compared with the same period last year mainly due to the nationwide lockdown to prevent the spread of COVID-19 and high prices, according to a World Gold Council (WGC) report.

Overall gold demand in the country was 213.2 tonnes during the second quarter of 2019, WGC said in its ‘Q2 Gold Demand Trends’ report.

In terms of value, India’s gold demand during the second quarter of this year was Rs 26,600 crore, down by 57 percent compared to Rs 62,420 crore in the corresponding period of 2019.

The total jewellery demand in India for the second quarter of 2020 decreased by 74 percent at 44 tonnes compared to 168.6 tonnes in the same quarter of 2019.

Jewellery demand, in value terms, fell by 63 percent during the April-June this year at Rs 18,350 crore from Rs 49,380 crore in the corresponding period last year.

Total investment demand for Q2 2020 declined by 56 percent to 19.8 tonnes during the quarter under review against 44.5 tonnes last year.

In value terms, gold Investment demand during the second quarter witnessed a dip of 37 percent at Rs 8,250 crore from Rs 13,040 crore.

Total gold recycled in the country also saw a decline of 64 percent during April-June quarter at 13.8 tonnes from 37.9 tonnes in Q2 of 2019 as refineries were closed due to the nationwide lockdown.

Similarly, total gold imports in India in Q2 2020 sank 95 percent to 11.6 tonnes during the quarter compared to 247.4 tonnes in Q2 2019 due to no movement.