India’s April-June gold demand falls 70%: World Gold Council

Mumbai, July 30

Gold demand in India plunged 70 per cent through the April-June quarter to 63.7 tonnes in contrast with the identical interval final yr primarily because of the nationwide lockdown to stop the unfold of COVID-19 and excessive costs, based on a World Gold Council (WGC) report.

Overall gold demand within the nation was 213.2 tonnes through the second quarter of 2019, WGC mentioned in its ‘Q2 Gold Demand Trends’ report.

In phrases of worth, India’s gold demand through the second quarter of this yr was Rs 26,600 crore, down by 57 per cent in comparison with Rs 62,420 crore within the corresponding interval of 2019.

The whole jewelry demand in India for the second quarter of 2020 decreased by 74 per cent at 44 tonnes in comparison with 168.6 tonnes in the identical quarter of 2019.

Jewellery demand, in worth phrases, fell by 63 per cent through the April-June this yr at Rs 18,350 crore from Rs 49,380 crore within the corresponding interval final yr.

Total funding demand for Q2 2020 declined by 56 per cent to 19.Eight tonnes through the quarter beneath assessment towards 44.5 tonnes final yr.

In worth phrases, gold Investment demand through the second quarter witnessed a dip of 37 per cent at Rs 8,250 crore from Rs 13,040 crore.

Total gold recycled within the nation additionally noticed a decline of 64 per cent throughout April-June quarter at 13.Eight tonnes from 37.9 tonnes in Q2 of 2019 as refineries have been closed because of the nationwide lockdown.

Similarly, whole gold imports in India in Q2 2020 sank 95 per cent to 11.6 tonnes through the quarter in comparison with 247.four tonnes in Q2 2019 on account of no motion.

“The second quarter of 2020 was defined by lockdowns and high prices, both of which acted in combination to keep India’s gold demand record low at 63.7 tonnes, down 70 per cent,” WGC Managing Director, India, Somasundaram PR mentioned.

Sales development through the window of alternative, afforded by rest of lockdown in choose cities, do level to wholesome latent demand that ought to floor as soon as COVID-19 turbulence is behind us, he added.

He mentioned, demand for jewelry dropped by 74 per cent to 44 tonnes, in an environment of concern and uncertainty the place weddings have been postponed or simply turned out to be uncharacteristically quiet and personal.

“Investment demand fared comparatively higher, with demand drop decrease at 56 per cent to 19.Eight tonnes – as gold’s protected haven attributes and maybe some value improve anticipation attracted HNIs and traders.

“Naturally, online buying convenience played a significant part in consumer behaviour during lockdown, as we saw gold exchange traded funds (ETFs) grow after being dormant for many years,” he famous.

Digital gold too noticed important exercise, although volumes are but negligible within the total demand state of affairs, he mentioned including that logistical points and poor demand crashed imports by 95 per cent, to a mere 11.6 tonnes.

“Overall, gold demand in India in H1 2020 was 165.6 tonnes, plummeting 56 per cent in comparison to H1 2019, despite marginal increase of gold ETF buying in keeping with global trends,” he said.

Going ahead, he mentioned, India’s COVID-19 journey in H2 will chart the course and tempo of financial revival of which gold demand is an integral half.

“A way of optimism is creating amongst commerce, nevertheless, that, by Dhanteras, COVID-19-related disruptions could matter much less as society learns to dwell with it, with a doable upside following some constructive information on therapy.

“This should spur consumer confidence, and jewellery demand will play a big role in bringing things to normalcy. Fast rising gold prices could act as headwinds though,” he added.

The value is at present a life-time excessive of over Rs 50,000 per 10 grams, a key milestone and response is of course blended – with content material traders and cautious customers and to place it in perspective, gold costs have risen by 60 per cent since January 2019 and 20 per cent since January 2020, revenue development or expectation haven’t stored tempo with this, Somasundaram mentioned.

“As we are still in the midst of the crisis without clear sight of many variables on consumer behaviour, prices or length of the disruption, we will not be able to quantify the impact on the full-year gold demand in India,” he added. PTI

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