Gold Demand Review: There is a huge drop in the demand for gold, the worse condition of the sale of jewelry!
There has been a decline in the demand for gold in the country during the January-March quarter. According to the World Gold Council, people’s attraction towards gold has decreased in the first quarter of 2022 due to expensive prices and lesser timings of weddings. The sale of gold has also decreased due to the Russia-Ukraine War.
Actually, due to the effect of inflation, now the attractiveness of gold among Indians is also fading. A report by the World Gold Council (WGC) has claimed that the demand for gold in the country has come down in the first quarter of this year.According to the WGC, the demand for gold in the country has decreased by 18 percent in January-March 2022. Along with this, the demand for recycled gold has increased by 88 percent during this period. Due to the decrease in the demand for gold, its import declined by 58 percent to 132.2 tonnes.
In the January-March quarter, higher prices and less auspicious occasions like weddings etc. have reduced the demand for gold. Along with this, due to the possibility of further fall in prices, people also postponed the purchase of gold.
In the first quarter of last year, gold was at Rs 42 thousand 45 per 10 grams. According to the WGC report, gold demand in India fell by 18 per cent to 135.5 tonnes in the first quarter of this year i.e. January-March, while the demand for gold in January-March 2021 was 165.8 tonnes.
If we look at the price, the demand for gold slipped 12 percent in the January-March quarter to Rs 61,550 crore. According to the report, there has also been a decline in the demand for jewelery in the January-March quarter and it fell 26 percent to 94.2 tonnes in the first quarter of 2022.
According to WGC, this was the third quarter after 2010, excluding the Corona period, when the demand for gold jewelery was less than 100 tonnes. In the value term, the demand for gold jewelery fell by 20 percent to Rs 42 thousand 800 crore. Whereas in January-March 2021, jewelery worth Rs 53 thousand 200 crore was sold.
