Demand for gold in India during the April-June period increased 19.2 per cent to 76.1 tonne, compared to the same quarter of 2021, according to a report by the World Gold Council (WGC).
In April-June 2021, demand stood at 63.8 tonne.
“Demand for gold in India for Q2 2021 was at 76.1 tonne, increase by 19.2 per cent as compared to overall Q2 demand for 2020 (63.8 tonne),” it said.
Further, total jewellery demand in India for Q2 2021 was up by 25 per cent at 55.1 tonne as compared to Q2 2020 (44 tonne).
The value of jewellery demand was Rs 23,750 crore, a rise of 29 per cent from Q2 2020, it said.
Total investment demand in Q2 2021 increased by 6 per cent to 21 tonne in comparison to that in Q2 2020. In value terms, gold Investment demand was Rs. 9,060 crore, up by 10 per cent from Q2 2020 (Rs. 8,250 crore).
Somasundaram PR, Regional CEO, India, World Gold Council said: “Q2 2021 was marked by widespread regional lockdowns following rise in covid infections. Unlike the previous year when a national lock down took businesses by surprise, this quarter was relatively better as businesses were more prepared.”
Demand in Q2 2021 showed a 19.2 per cent Y-o-Y increase on a very low base of Q2 2020, the impact was, however severe as it muted demand during Akshaya Tritiya and wedding season in Q2.
“Outlook for H2 2021 is yet uncertain, as consumer confidence and business response are subject to the impact of a looming threat of third wave of covid and the pace of economic recovery. One view, most comforting, is that given the pace of vaccination and the sero survey results, as a society, we may learn to live with covid and its variants, ensuring businesses and sales become more resilient,” he said.
Dhanteras and the upcoming season which has more auspicious wedding days in Q4 2021 compared to the previous year appear positive for demand. For the gold investment segment, however, attractive equity markets and volatile gold prices are strong headwinds. Consumer behaviour is linked to several economic and non-economic variables that pose great difficulty in making any forecast of full year gold demand in India, he added.
Globally too strong consumer demand recovery and gold ETF inflows in Q2 were insufficient to offset heavy Q1 outflows. Global gold ETFs saw inflows of 40.7 tonne ($2.5 billion) in Q2.
Inflows were concentrated in Western markets, with US, Germany and France all seeing double-digit tonnage growth in holdings.