World Gold Council (WGC) in its latest report has said that India's demand for gold marked a rise of 13% at 213 tonnes during the second quarter (April-June) of 2019, as against 189.20 tonnes during the second quarter of 2018, due to strong trade promotions, a higher number of auspicious days and a positive consumer response to softer prices in April and May. In terms of value, the yellow metal marked a rise of 17% during Aril-June period of this year at 62,422 crore, compared to Rs 53,260 crore in the same period of 2018.
Jewelry demand of Q2 2019 rose by 12% at 168.6 tonne compared to 149.9 tonne a year ago. Meanwhile, in value the bullion peaked by 17% at Rs 49,380 crore compared to Rs 42,200 crore last year same period.
Total investment demand for the quarter under review was at 44.5 tonne, jumped by 13% in comparison to 39.3 tonne last year, while in value gold investment demand in Q2 this year was Rs 13,040 crore, rose by 18% from Rs 11,060 crore in the same period last year. Total gold recycled in India grew by 18% to 37.9 tonne, from 32 tonne in the same quarter of 2018.
Bar and coin demand soared to a 5-year high level during Q2. However, the price rise in June and an unfounded expectation of a import duty cut in the fiscal budget, brought demand to a virtual standstill when the quarter ended. As per reports, gold demand in India in the first half of 2019 was 372.2 tonnes, about 9 % more than the same period last year.