<p>India's gold demand jumped 19.2 per cent at 76.1 tonnes for the second quarter of the calendar ended June 2021 compared to 63.8 tonnes in the corresponding quarter last year.</p>.<p>The demand for gold in Q2 2021 witnessed a year-on-year increase on a very low base of Q2 2020 due to nationwide lockdowns. However, the impact was severe as it muted demand during Akshaya Tritiya and the wedding season in the second quarter.</p>.<p>The value of gold consumed by Indians during the quarter was Rs 32,810 crore, an increase of 23 per cent compared to Rs 26,600 crore in the same period last year. Total jewellery demand in India for Q2 2021 was up by 25 per cent at 55.1 tonnes as compared to 44 tonnes in the year-ago quarter. The value of jewellery demand was Rs 23,750 crore, a rise of 29 per cent from the same period last year, which stood at Rs 18,350 crore, according to the World Gold Council (WGC).</p>.<p>Total gold recycled in India during the quarter also increased 43 per cent at 19.7 tonnes as against 13.8 tonnes in Q2 of last year.</p>.<p>India's gold imports witnessed a whopping 11 times growth in the June quarter at 120.4 tonnes against 10.9 tonnes in the corresponding quarter last year, the WGC said.</p>.<p><strong><a href="https://www.deccanherald.com/business/business-news/gold-hits-one-week-high-after-fed-fails-to-signal-taper-timeline-1014078.html" target="_blank">Read | Gold hits one-week high after Fed fails to signal taper timeline</a></strong></p>.<p>"Q2 2021 was marked by widespread regional lockdowns following rise in covid infections. Unlike the previous year when a national lockdown took businesses by surprise, this quarter was relatively better as businesses were more prepared," said Somasundaram PR, Regional CEO, India, World Gold Council.</p>.<p>Digital solutions and pause in restrictions in pockets helped growth of 25 per cent in jewellery demand, to 55.1 tonnes. Investment demand grew 6 per cent to 21 tonnes as prices softened. Interestingly, as imports surged to 120.4 tonnes in anticipation of pick up in fabrication, he said.</p>.<p>Overall, gold demand in India between January and June 2021 (H1 2021) was 216.1 tonnes, an increase of 30 per cent compared to H1 2020. "Though it is still a multi-year low, it reflects an underlying demand momentum that will likely support a sharp spike in demand once normalcy is restored on the covid front," Somasundaram said.</p>.<p><strong>Outlook for H2 2021</strong></p>.<p>The WGC said the outlook for H2 2021 is yet uncertain, as consumer confidence and business response are subject to the impact of a looming threat of a third wave of Covid-19 and the pace of economic recovery. One view, most comforting, is that given the pace of vaccination and the Sero survey results, as a society, we may learn to live with Covid and its variants, ensuring businesses and sales become more resilient.</p>.<p>"Dhanteras and the upcoming season which has more auspicious wedding days in Q4 2021 compared to the previous year appear positive for demand. For the gold investment segment, however, attractive equity markets and volatile gold prices are strong headwinds. Consumer behaviour is linked to several economic and non-economic variables that pose great difficulty in making any forecast of full year gold demand in India," Somasundaram added.</p>
<p>India's gold demand jumped 19.2 per cent at 76.1 tonnes for the second quarter of the calendar ended June 2021 compared to 63.8 tonnes in the corresponding quarter last year.</p>.<p>The demand for gold in Q2 2021 witnessed a year-on-year increase on a very low base of Q2 2020 due to nationwide lockdowns. However, the impact was severe as it muted demand during Akshaya Tritiya and the wedding season in the second quarter.</p>.<p>The value of gold consumed by Indians during the quarter was Rs 32,810 crore, an increase of 23 per cent compared to Rs 26,600 crore in the same period last year. Total jewellery demand in India for Q2 2021 was up by 25 per cent at 55.1 tonnes as compared to 44 tonnes in the year-ago quarter. The value of jewellery demand was Rs 23,750 crore, a rise of 29 per cent from the same period last year, which stood at Rs 18,350 crore, according to the World Gold Council (WGC).</p>.<p>Total gold recycled in India during the quarter also increased 43 per cent at 19.7 tonnes as against 13.8 tonnes in Q2 of last year.</p>.<p>India's gold imports witnessed a whopping 11 times growth in the June quarter at 120.4 tonnes against 10.9 tonnes in the corresponding quarter last year, the WGC said.</p>.<p><strong><a href="https://www.deccanherald.com/business/business-news/gold-hits-one-week-high-after-fed-fails-to-signal-taper-timeline-1014078.html" target="_blank">Read | Gold hits one-week high after Fed fails to signal taper timeline</a></strong></p>.<p>"Q2 2021 was marked by widespread regional lockdowns following rise in covid infections. Unlike the previous year when a national lockdown took businesses by surprise, this quarter was relatively better as businesses were more prepared," said Somasundaram PR, Regional CEO, India, World Gold Council.</p>.<p>Digital solutions and pause in restrictions in pockets helped growth of 25 per cent in jewellery demand, to 55.1 tonnes. Investment demand grew 6 per cent to 21 tonnes as prices softened. Interestingly, as imports surged to 120.4 tonnes in anticipation of pick up in fabrication, he said.</p>.<p>Overall, gold demand in India between January and June 2021 (H1 2021) was 216.1 tonnes, an increase of 30 per cent compared to H1 2020. "Though it is still a multi-year low, it reflects an underlying demand momentum that will likely support a sharp spike in demand once normalcy is restored on the covid front," Somasundaram said.</p>.<p><strong>Outlook for H2 2021</strong></p>.<p>The WGC said the outlook for H2 2021 is yet uncertain, as consumer confidence and business response are subject to the impact of a looming threat of a third wave of Covid-19 and the pace of economic recovery. One view, most comforting, is that given the pace of vaccination and the Sero survey results, as a society, we may learn to live with Covid and its variants, ensuring businesses and sales become more resilient.</p>.<p>"Dhanteras and the upcoming season which has more auspicious wedding days in Q4 2021 compared to the previous year appear positive for demand. For the gold investment segment, however, attractive equity markets and volatile gold prices are strong headwinds. Consumer behaviour is linked to several economic and non-economic variables that pose great difficulty in making any forecast of full year gold demand in India," Somasundaram added.</p>
