Total gold demand for corresponding quarter 2022 is 135.5 tonnes, WGC Q1 2023 Gold Demand Trends Says
Mumbai: According to the World Gold Council (WGC), India’s gold demand in the January-March quarter fell 17% to 112.5 tonnes as record high gold rates and high price volatility affected consumption.
Overall gold demand for the corresponding quarter of 2022 was 135.5 tonnes, WGC’s Q1 2023 Gold Demand Trends said.
“Indian gold demand in Q1 2023 fell 17% year-on-year to 112.5 tonnes following record high and volatile gold prices. This impacted sentiment and jewelry demand fell to 78 tonnes from 94.2 tonnes in Q1 2022 with little investment support.
“Since 2010, excluding the gap due to the pandemic, this is the fourth time Q1 gold jewelry demand has fallen below 100 tonnes,” WGC India Regional Managing Director Somasundaram PR told PTI.
Stronger gold prices and volatility, plus fewer auspicious days to stimulate consumption, have prompted many households to delay buying perhaps in anticipation of a downward correction, he said.
“Global factors, mainly US interest rate hikes, which pushed up the dollar along with a devaluation of the rupee kept gold above Rs 60,000, up almost 19% y/y. Trade discussions indicate that purchases through recycling of old gold jewelry and lower unit purchases, which then reflect higher volumes on digital gold platforms, allow for savings. micro-savings in gold,” noted Somasundaram.
In terms of value, the quarter saw a 9% decline at Rs 56,220 crore, compared with Rs 61,540 in the same period last year.
Total jewelry demand fell 17% to 78 tons in the first quarter of 2023, compared with 94.2 tons in the same period last year.
The value of jewelry demand was Rs 39,000 crore, down 9% from the first quarter of 2022 of Rs 42,800.
He further noted that investment demand, mainly for gold bars and coins, also fell 17% to 34.4 tonnes in the first quarter of 2023 from 41.3 tonnes annually.
“Our gold demand forecast for 2023 is unremarkable even as economic momentum in India remains healthy and the RBI rate hike cycle has come to a halt. The gold buying outlook is highly dependent on the rupee price, which shows no signs of slowing down and should act as a deterrent, and of course the monsoons, although the fourth quarter as always, could cause some confusion. doubt. We believe current trends point to a demand of 750-800 tonnes for 2023,” he said.
The report further noted that total investment demand fell 17% in the first quarter of 2023 at 34.4 tonnes compared with 41.3 tonnes in the same period last year.
In terms of value, first-quarter gold investment demand fell 8% to Rs 17,200 crores from Rs 18,750 between January and March 2022.
Total domestic recycled gold rose 25% in the first quarter to 34.8 tonnes from 27.8 tonnes in the same period last year.
Total net imports of ingots in the first quarter were 134 tonnes, similar to the same period in 2022.
