Gold demand in India dropped to 86.6 tonnes in the September quarter due to Corona and higher prices. Due to disruptions related to the Coronavirus epidemic and higher prices, demand for gold declined in the September quarter. Gold demand in India decreased by 30 per cent to 86.6 tonnes compared to a year ago. The World Gold Council (WGC) has given this information in a report.
According to the report, the total demand for gold in the September quarter of last year was 123.9 tonnes. Based on value, the demand for gold during this period decreased by four per cent to Rs 39,510 crore as compared to last year’s Rs 41,300 crore.
More than a second quarter
World Gold Council Managing Director (India) Somasundaram PR said that due to disruptions related to Covid-19, weak consumer sentiment, high prices and turmoil, gold demand fell by 30 per cent to 86.6 tonnes in the third quarter of 2020. Somasundaram said, “Demand in the third quarter of 2020 is generally low due to seasonal factors like a monsoon and inauspicious periods like paternal side and more months. There has been a 48 per cent drop in demand for jewellery, as there was no support for festivals or weddings in the purchase of jewellery. “
He told that buying jewellery in the country is an experience and restrictions like social safe distance and wearing masks have kept the consumer level low in retail stores. However, it is more than the second quarter of the year 2020. The demand for gold in the second quarter was reduced by 70 per cent to 64 tonnes compared to the year before.
Low price advantage in August
The reason for the improvement in demand every quarter is the relaxation of lockdown restrictions and lower prices for some time in August. He said that sometime in August, due to low prices, some people got a chance to shop. During this period, India’s total jewellery demand fell by 48 per cent to 52.8 tonnes from 101.6 tonnes a year earlier.
In terms of value, demand for jewellery fell 29 per cent to Rs 24,100 crore from Rs 33,850 crore a year ago. During this period, total investment demand increased by 52 per cent to 33.8 tonnes from 22.3 tonnes a year ago.