Gold demand fell 38 per cent to 181 tonnes in the June quarter against 294 tonnes recoded in the same period last year as weak rupee pushed up prices.

Investment demand halved to 56 tonnes.

Jewellery demand dipped 30 per cent to 125 tonnes.

The marked declines were partly a reflection of the strength of demand in June quarter last year, said the World Gold Council.

The fluctuations in the exchange rate and the rise in the gold price to records of around Rs 30,000 per 10 grams in June were compounded by domestic inflation and concerns over a weak monsoon season, it added.

(This article was published on August 16, 2012)
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