‘Gold demand up 37% in April-June’

Demand for gold remained buoyant from April to June this year, during the second quarter of 2017. According to a quarterly report on gold demand trends by World Gold Council (WGC), demand for the yellow metal rose by 37 per cent against the same quarter previous year. The story is no different for Gujarat, one of the top three gold consumer states in India, where jewellery sales have shot up at least by 35 per cent to 40 per cent compared to the first quarter, according to estimates provided by jewellers.

Data from the Ahmedabad Air Cargo Complex shows that gold imports in Gujarat stood at 25.19MT from April to June. Gold analysts said investments in gold shot up significantly in anticipation of higher prices under the Goods and Services Tax (GST) regime from July 1. “Expecting a punitive GST rate, jewellers and consumers alike crammed their purchases into the first two months of the quarter, slowing down once the government confirmed that a 3 per cent rate would be applied,” stated the WGC Report. Jewellers received advance bookings for wedding jewellery. “We received orders in May and June for gold jewellery for weddings that were scheduled in December or January this year,” said Jigar Soni, a city-based jeweller.

Courtesy: Times of India