What economic slump? Demand for gold in India rises 43% in Q2


India’s gold demand for the second quarter (April-June) of 2022 increased by 43 per cent compared to the corresponding quarter last year, the latest report by World Gold Council indicates.

India’s second quarter (Q2) 2022 gold demand value was ₹79,270 crore (approximately $9.95 billion), an increase of 54 per cent in comparison with Q2 2021, which was ₹51,540 crore (approximately $6.47 billion).

Total jewellery demand in India for Q2 2022 was up 49 per cent at 140.3 tonnes as compared to 94 tonnes for Q2 2021.

Globally, Q2 gold demand increased 4 per cent year-on-year to 453 tonnes, helped by a recovery in Indian demand. The strong performance in India balances a significant decline of 28 per cent in China, where the market was dampened by Covid lockdowns that stalled economic activity and constrained consumer spending.

“India’s gold demand for Q2 22 left behind the anxiety caused by the pandemic in Q1 and marked by festivals and wedding buying, grew 43 per cent year-on-year (YoY) to 170.7 tonne. Akshaya Tritiya (a Hindu festival associated with gold buying) coupled with traditional wedding buying spurred jewellery demand by 49 per cent to 140.3 tonne, though on a low base as Q2 of last year was impacted by a devastating second wave of Covid. Total jewellery demand for H1 (first half) reached 234 tonne which 6 per cent higher y-o-y. Gold investment that is, bar, and coin demand in Q2 was of 30 tonne which is 20 per cent higher y-o-y, whereas H1′ 22 demand of 72t at 11 per cent stronger y-o-y. Gold demand drew support from volatility in equity markets and inflation expectations,” stated Somasundaram PR, Regional CEO, India, World Gold Council.

The World Gold Council’s latest Gold Demand Trends report revealed that global gold demand (excluding OTC) in the second quarter was down 8 per cent year-on-year to 948 tonnes.

Globally gold bar and coin demand remained stable year-on-year at 245 tonnes in Q2. Growth in demand came notably from India, the Middle East, and Turkey which helped to balance weakness in Chinese demand that was partially driven by continued coronavirus lockdowns.