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Gold demand drops 28% to 195 tonnes in Q3

Wed 09 Nov 2016, 10:22:29
Demand for gold in India for the third quarter of calendar year 2016 (Q3 CY16) declined 28% to 194.8 tonnes when compared with 271.1 tonnes in the same quarter last year.
As far as expectations for gold demand in 2016 is concerned, World Gold Council (WGC) expects that full-year gold demand expectations are in the range of 650–750 tonnes.
 Gold demand value for the quarter in the country declined 12% to Rs 55,970 crore compared with Rs 63,660 crore in Q3 CY15, according to the WGC. Jewellery demand during the quarter in India for Q3 2016 was down by 28% at 154.7 tonnes when compared with 214.1 tonnes in Q3 2015 while the value of jewellery demand was Rs 44,450 crore, a drop of 12% from Q3 2015 (Rs 50,270 crore), WGC said.
Total investment demand for Q3 2016 was down by 30% at 40.1 tonnes in comparison with Q3 2015 (57 tonnes). In value terms, gold investment demand was Rs 11,520 crore, a drop of 14% from Q3 2015 (Rs 13,390 crore). Total gold recycled in India in Q3 2016 was up by 114% at 39 tonnes, compared with 18.2 tonnes in Q3  2015 .
 “While an elevated price level has been an obvious factor for the drop in volume, other issues appear to have had an impact on demand — such as the trade strike following the introduction of excise duty, the regulation on PAN card for purchases above Rs 2 lakh and the subdued sentiment on gold buying when the income disclosure scheme was running and the unusual discounts to bullion prices in the unorganised segments that caused further disruption to the official trade channels,” WGC India managing director Somasundaram PR said.

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