PB Jayakumar New Delhi Last Updated: August 3, 2017 | 18:45 IST
Seasonal demand and improved rural sentiment, coupled with pre-GST sales, helped demand for gold in India increase by 37 percent in the April-June second quarter of 2017.
According to World Gold Council , demand for gold in India during the period was 167.4 tonnes, 37 percent higher than compared to the overall demand for same period a year ago. It was valued Rs 43,000 crore, 32 percent higher than the Rs 33,090 crore in the earlier period.
Jewellery demand was 41 percent higher at 126.7 tonne and was valued Rs 33,000 crore. The World Gold Council predicts demand for gold in India for the year at 650-750 tonnes.
"Though underlying concerns about GST and other transparency measures continue, predictably, positive sentiment returned with continued remonitisation and an expectation of monsoons. This was evident in the sales momentum during Akshaya Tritiya supported by a relatively higher numer of auspicious wedding days during the quarter", explained PR Somasundaram, India managing director, World Gold Council.
Towards the end of the quarter, one of the biggest demand drivers was the GST rate on gold, which spurred consumers and traders to advance their gold purchases ahead of the GST rollout , he said.
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