Gold demand falls 49% in July-Sept quarter

Gold demand in the country fell 49 per cent in the July-September quarter when compared with the same period of last year as high prices and a poor monsoon impacted consumer spending and confidence. But the demand was higher by 26 per cent from the April-June quarter. According to the World Gold Council,jewellery demand at 111.6 tonnes,was down 42 per cent on year earlier levels,while net retail investment demand at 26 tonnes was two thirds lower.

“Consumer and retail demand in India has been impacted by the high price levels witnessed in this quarter. Consumers are still adjusting to a new and higher pricing environment,where there is still widespread awareness about gold’s role as a store of value. As a result,we are seeing less distressed selling as consumers look to preserve their wealth in the face of ongoing economic uncertainty,” said Aram Shishmanian, chief executive of WGC.

Experts say the 200-tonne gold purchase by the RBI pushed gold prices higher in early November. Prices hit record highs in recent weeks as buying pushed prices through key technical resistance levels. “High prices have pressured physical offtake this year as consumers shied away from the metal,” said bullion analyst Bhargav Vaidya.