Gold demand drops 47% during Q2

The demand of gold is decreasing in India. A drop of 47 percent was recorded in the gold demand during the second quarter. The overall demand of gold has recorded decline of 19 per cent as per report of the World Gold Council (WGC) due to firm prices of the precious metal.

The demand of gold jewellery also fell by 19 percent. This may be due to less spending by the customers following high price rise. India has recorded a huge fall in jewellery demand for the second quarter. The gold demand in China and Egypt has been recorded 2 per cent higher.

The industrial and dental demand has also declined to 111.8 tonnes. The CEO of World Gold Council (WGC) said that the demand is low due to high and volatile gold price, inflation and global slowdown.

The investment demand has also reduced for the current quarter. About nine per cent decline in net retail investment has been recorded in the international market.

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