Global demand for gold jewelry fell 2% year on year to 510.3 tonnes in the second quarter amid a weaker Indian market, the World Gold Council (WGC) reported last week.
Appetite for gold jewelry in India fell 8% to 147.9 tonnes in the three months ending June 30 as local prices climbed in response to the rupee weakening against the US dollar. In addition, higher spending during the same period last year magnified the decline, as consumers increased their purchases before the implementation of the country’s new goods and services tax on July 1, 2017.
India’s slowdown outweighed a 5% rise in Chinese demand to 144.9 tonnes. Purchases of traditional 24-carat jewelry in China largely drove the increase, while new marketing campaigns and innovative promotions led to a shift in interest toward newer, higher-premium products, the WGC explained. US demand grew 5% to a 10-year high of 28.3 tonnes.
Global demand for gold in all forms — such as bars and coins, and for technology, finance and investment — slid 4% to 964.3 tonnes.