JOIN USIndia's demand for gold dips 30% year-on-year to 86.6 tonnes in September quarter
Demand for gold in India declined 30% to 86.6 tonnes for the third quarter ended September. The demand for gold stood at 123.9 tonnes in the same quarter last year. India's third-quarter 2020 gold demand value was Rs 39,510 crore, down 4% compared to Q3 2019, which stood at Rs 41,300 crore.
According to the World Gold Council (WGC), the total jewellery demand in India for Q3 2020 decreased by 48% at 52.8 tonnes compared to 101.6 tonnes in the same quarter last year. The value of jewellery demand was Rs 24,100 crore, down by 29% from Rs 33,850 crore in the same quarter last year.
Total investment demand for gold in Q3 2020 at 33.8 tonnes increased by 52% in comparison to Q3 2019 (22.3 tonnes). In value terms, gold investment demand in Q3 2019 was Rs 15,410 crore, up by 107% from Q3 2019 (Rs 7,450 crore). Total gold recycled in India in Q3 2020 was 41.5 tonnes, up by 14% compared to 36.5 tonnes in Q3 2019, the WGC said.
"Looking ahead, we typically witness an upswing in gold demand in the fourth quarter on account of Dussehra, Dhanteras and other festivals coupled with a busy wedding season post-harvest. This year, a good monsoon notwithstanding, price and covid shadow will affect sentiment, though we can reasonably expect at least a part of the pent-up demand to surface. But as weddings and festivities become low-key affairs, savings on other spends could be channelised into gold," WGC said.