Q1 gold demand falls 12% to 115.6 t; imports plunge 50%: WGC


Team Udayavani, May 4, 2018, 6:14 PM IST

Mumbai: Gold demand declined by a steep 12 per cent in the first quarter of 2018 to 115.6 tonne due to high prices and poor investment demand, the World Gold Council (WGC) said today.

In the March 2017 quarter, demand had stood at 131.2 tonne, WGC said in a report.

As demand fell by 12 per cent, imports plunged by a whopping 50 per cent in the first quarter to 153 tonne from 260 tonne a year ago, according to the report.

Demand fall was led poor jewellery demand which during the reporting quarter dipped 12 per cent to 87.7 tonne from 99.2 tonne a year ago.

In terms of value, demand fell 8 per cent to Rs 31,800 crore from Rs 34,440 crore.

“Decline in demand can be attributed to a number of factors, including the rising local gold prices, a substantial drop in the number of auspicious wedding days this year compared to the previous year, and an anticipation of an import duty cut in the Budget,” WGC India managing director PR Somasundaram told PTI.

“The transition to GST, especially by the unorganised sector, also affected demand to some extent,” he added.

He also said the PNB scam impacted the trade sentiment, which somehow got revived by the time of Akshaya Tritiya.

In value terms, jewellery demand dropped 7 per cent to Rs 24,130 crore from Rs 26,050 crore a year ago.

Investment demand plunged 13 per cent to 27.9 tonne from 32 tonne in the previous 12 months period.

In value terms, gold investment demand stood at Rs 7,660 crore, down 9 per cent from Rs 8,390 crore.

Total gold recycled also declined 3 per cent to 14.1 tonne from 14.5 tonne, the report said.

“The first quarter is not naturally a dynamic period for gold in the country as people usually settle their other financial commitments for tax purposes. Moreover, there was also no catalyst like duty cuts to trigger demand,” Somasundaram said.

The 50 per cent decline in imports to 153 tonne from 260 tonne was “mainly on account of subdued consumer demand, down-stocking following the GST transitional period and also on expectations of duty cut in the Budget,” he added.

Asked about import this year, Somasundaram said inward shipment is likely to be on similar lines with demand.

For the full year of 2018, he said, gold demand is expected to be in the range of 700-800 tonne.

“We are positive about demand going forward due to expectation of better monsoons and the resultant higher rural income and an overall better GDP growth. The compliance standard is growing and in the long-run it’s going to be positive and transform the industry,” he said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Coal minister suggests using Paradip Port Trust as coal hub

Trials in crimes against children to be completed in a year: Kerala CM

Modi govt making coastal security impenetrable: Shah

District bordering Kerala on high alert after 32 students test Covid positive

COVID-19: Total fatalities cross 30,000 in Kerala

PM Modi to offer prayers at Kedarnath temple on Nov 5

Timeline in cruise drugs seizure case

Related Articles More

Sensex crashes 1159 pts to end day below 60k, Nifty down by 354 pts

Rupee rises 16 paise against US dollar in early trade

Nykaa raises Rs 2,396 cr from anchor investors ahead of IPO

CBDT expands Form 26AS info list; includes foreign remittances, MF buys

GST officers arrest 3 persons for running fake firms, evading Rs 48 cr GST

MUST WATCH

Soma Poojary | Rice Cultivation Information Guide

News Bulletin 28-10-2021

Basavaraj Bommai at Hubballi

Geetagayana at Kaup Beach

Karnataka rajyotsava celebrations: Mass rendition of Kannada songs at Udupi DC Office


Latest Additions

Coal minister suggests using Paradip Port Trust as coal hub

Amarinder-Shah meeting over farm laws postponed

Trials in crimes against children to be completed in a year: Kerala CM

Modi govt making coastal security impenetrable: Shah

District bordering Kerala on high alert after 32 students test Covid positive

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.