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Gold demand during the last quarter of this year is likely to be lower than the same period in 2012, however, it will be higher than the July-September period as the demand is picking up and traditionally it is the buying season, said World Gold Council.
“Supply constraints and high inflation resulted in decline in gold demand by 32 per cent to 148.2 tonnes compared to 219.1 tonnes in the same period last year.
“Going forward in the fourth quarter, we expect the demand to be more from the third quarter as the fourth quarter is traditionally a busy season capturing the post—monsoon rural spending, major festivals and auspicious wedding days,” WGC Managing Director (India) Somasundaram P R told reporters here.
However, the demand during the last quarter of 2013 is likely to remain lower compared to the fourth quarter of 2012, due to supply constraints this year following the government restrictions, he added.
The demand during Q4 of 2012, stood at 262 tonnes.
In value terms, the country’s Q3 2013, gold demand declined by 39 per cent to Rs 39,278.2 crore from Rs 64,200.9 crore in Q3 of 2012, according to WGC data.
Total Jewellery demand during Q3 2013, was down by 23 per cent at 104.7 tonnes compared to 136.1 tonnes in the corresponding quarter of 2012.
The value of jewellery demand saw a decline of 30 per cent at Rs 27,749.2 crore, from Rs 39,880.2 crore in Q3 of 2012.
Total investment demand declined by 48 per cent at 43.5 tonnes compared to 83 tonnes in Q3 of 2012.
In value terms, gold investment demand dropped by 53 per cent at Rs 11,529 crore from Rs 24,320.7 crore from the same period of last year.
Total gold recycled in India in Q3 2013, shot up to 61.3 tonnes from 34 tonnes in Q3 2012.
“The third quarter was an exceptional period where the recycled gold increased due to high price and various schemes that incentivised the consumers,” Somasundaram pointed out.
When asked about imports, he said, it has begun but is very slow and during the July—September quarter it stood at 85 tonnes, while the demand was 148 tonnes.
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