A sharp increase in Prices reduced Demand for Gold in Q1

According to the World Gold Council (WGC), demand for gold in India declined 18 percent to 135.5 tonnes in the first three months of 2022. The major reason behind the decline in demand is the steep rise in prices. Last year the demand for gold in the first three months stood at 165.8 tonnes. The WGC released a report named, ‘Gold Demand Trends Q1 2022'. In it, the WGC stated that in terms of value, gold demand declined 12 percent to Rs 61,550 crore in the first three months of this year. It was at Rs 69,720 crore in the year 2021.

WGC Regional CEO, India, Somasundaram P R  informed PTI that prices of gold began increasing in the month of January, rising by 8 percent to Rs 45,434 per 10 grams (without taxes) in the first quarter of this year. Geopolitical tension is said to be the major reason behind this rise in prices. In comparison, the prices were at around Rs 42,045 crore in January-March 2021 period. According to the report, overall demand for jewelry in India during the latest March quarter declined 26 percent to 94.2 tonnes. It was at 126.5 tonnes in the same period last year.