Gold jewellery consumption in India decreases by 8% in terms of weight in April to June quarter

India’s gold jewellery consumption decreased by 8% in terms of weight and the country’s total gold consumption dropped by 7% in the April to June period of 2023. However, the monetary value of gold demand rose by 4% year-on-year during the second quarter of the calendar year. 

“This highlights the sensitivity of Indian consumers to policy changes, which can have short-term effects on gold demand,” said the World Gold Council’s India regional CEO Somasundaram PR, the Gem and Jewellery Export Promotion Council reported on its website. “While challenges related to high gold prices and inflation persisted, the supportive economic backdrop and consumer adaptability played a significant role in bolstering the market’s resilience.”
 
The World Gold Council’s recently published ‘Gold Demand Trends’ report stated that total gold demand was at 158.1 tonnes, down from 170.7 tonnes in the second quarter of the 2022 calendar year. Gold jewellery demand specifically totalled 128.6 tonnes in the April to June quarter this year, compared to 140.3 tonnes in the same time period a year prior. The drop in gold jewellery demand significantly contributed to the drop in general gold demand, according to the report. 

“Looking ahead for rest of the year, we remain cautious about gold demand as it faces uncertainties due to elevated local prices and slowdown in discretionary spending,” said Somasundaram PR. “However, the success of the monsoon season could bolster sentiment ahead of Diwali season and throw positive surprises. With H1 2023 demand at 271 tonnes, our estimate for full year gold demand is in the range of 650 to 750tonnes in 2023.”