India’s gold demand during July-September quarter this year shot up 39 per cent to 225.1 tonnes against the overall third quarter demand in 2013 on rise in jewellery sales, says a World Gold Council report.

The overall third quarter demand in the country for 2013 stood at 161.6 tonnes, WGC Gold Demand Trends report showed.

Gold demand during the period in terms of value rose 31 per cent to Rs 56,219.3 crore compared with Rs 42,829.6 crore in the third quarter of 2013.

Demand for jewellery

Similarly, the total jewellery demand was up by 60 per cent at 182.9 tonnes against 114.5 tonnes in the same period last year.

The value of jewellery demand surged 51 per cent to Rs 45,681.6 crore from Rs 30,346.5 crore in the third quarter of 2013.

“The rise in demand for gold jewellery during third quarter of 2014 reflects the unusual low base of third quarter of 2013 that was impacted by the introduction of a range of duty increases and restrictions.

“The third quarter can be viewed as normal for gold demand in spite of the unfulfilled expectations of a duty cut and policy relaxations from the new government,” WGC Managing Director (India) Somasundaram PR told PTI here.

He further said that demand around Diwali reflected the general optimism seen in the country.

“It is now beyond debate that import restrictions have had little impact on demand for gold and yet have strengthened the unauthorised supply channels and seems at odds with the overall sentiment that defines the new government’s business approach,” he added.

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