India's gold demand down 26% at 190.3 tonnes: WGC

India's gold demand down 26% at 190.3 tonnes: WGC

Gold demand in India declined by 26 per cent to 190.3 tonnes during the January-March quarter due to higher import duties and supply curbs imposed by the government, the World Gold Council on Tuesday said.

In the first quarter (Q1) of 2013, the gold demand in the country had logged in 257.5 tonnes, according to WGC Gold Demand Trends report.

In value terms, gold demand fell 33 per cent to Rs 48,853 crore during the first quarter of 2014, compared to Rs 73,183.6 crore in Q1, 2013.

“During Q1, 2014 the demand went down by 26 per cent illustrating the continued impact of higher import duties and supply curbs imposed by the Centre to reduce the Current Account Deficit due to which gold prices were higher in the spot markets,” WGC Managing Director, India, Somasundaram P R said here.

He said, however, that gold continued to enter India through unofficial channels although grey market estimates vary.

“Gold demand in UAE went up by 13 per cent, which shows that many Indians are buying there and bringing it to the country,” he pointed out.

The total jewellery demand was down 9 per cent at 145.6 tonnes compared to 159.5 tonnes Q1 of 2013.

In value terms, jewellery demand saw a fall of 18 per cent at Rs. 37,377.8 crore, from Rs. 45,331.2 crore in Q1 2013.

Total gold recycled went up marginally in Q1 2014 at 21.3 tonnes, from 21 tonnes in Q1 2013.

Total investment demand for Q1 2014 was down by 54 per cent at 44.7 tonnes from 98 tonnes in the same quarter last year.

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