Gold’s demand in India falls by 10% in Q2, because high prices affect jewelry

India’s gold demand in the quarter of June fell by 10% from a year ago to 134.9 tons, according to the World Gold Council (WGC), as a rising price of the yellow with metal tempered jewelry purchases.

Leading jewelery chains, including Reliance Retail, also marked a decrease in demand.

This is what the WGC, the Global Trade Association for the Gold Industry, encouraged to revise its projection from 2025 to the golden demand of India to 600-700 tons of earlier estimated from 700-750 tons.

The gold prices have lately been very volatile due to several factors, including the tariff imposition of the US President Donald Trump in several countries, with the metal crossing 10 grams for a lifetime for the first time on 22 April, but in the period April-Juni came in the RS 90,000 to RS 1 Lakh Bracket.

Dineh Taluja, Chief Financial Officer of Reliance Retail, the largest retailer in India, recently told analysts that the substantial rise in gold prices may have increased the invoice values (for his jewelry activities), but the number of accounts has fallen.

“The business is on steady growth, but obviously there is an impact on the significant increase in gold prices. In volume terms, the demand for gold has gone down (in April-june),” he said.to be sure, the surge in hased hax-has–oas-eaget– 1,21,800 crore of the gold sold in the country in the June Quarter, as per WGC. The demand waste has also reduced the import of gold by 34% on an annual basis to 102.5 tons. “But in terms of value it has risen due to the high gold prices,” he said.

Sachin Jain, regional CEO for India at WGC, said that the high gold price has stimulated his demand for the investment front, an increase in the demand volume of 7% on an annual basis of 46.1 tons. “Such figures underline an in -depth strategic dedication among consumers to gold as a long -term storage of value,” he said.

The high price of gold has influenced the consumption of jewelry in the country, with the question of 17% on an annual basis to 88.8 tons in April-June, according to estimates of WGC. Jain said that Goudrecycling remains resilient with a modest increase of 1% on an annual basis to 23.1 tons.

“This stability suggests that even at record price, consumers hold their gold, which reduces the status as a valued capacity. With a total gold demand from January to June at around 253 tons, we expect the question of the entire year to vary between 600 and 700 tons,” he said.

On Thursday, Gold Gold on RS 98,414 per 10 grams.