Virus, high gold prices dent India’s Q1 jewellery demand by 41%: WGC

India’s net Bullion imports contracted 56% year- on -year to 78.4 tonnes in the March quarter of the current year .

Jewellery demand in the world’s second largest consumer slumped 41% to 73.9 tonnes , thanks to a 25% jump in quarterly average price to Rs 36,874 per 10 gm (ex import duty and GST) and the fallout from Covid 19, the WGC latest global demand trends report shows.

This Quarterly net Bullion import figure is the lowest over the past 32 quarters that WGC has provided data for .

Scrap or sale of old increased 16% to 18.5 tonnes . while investment demand fell 17% to 28.1 tonnes.

Overall, consumer demand for the metal slipped 36% year on year to 101.9 tonnes in the March quarter

The WGC report forecasts central buying gold purchases to slow sharply . “Central banks continued to amass gold, although we expect net buying to slow sharply. Amid heightened volatility and uncertainty, global gold reserves grew by 145t in Q1. But Russia announced that it would suspend its long-term buying programme from April, signalling a sharp slowdown in global net buying.”

Courtesy: Economic Times