Mumbai: Gold demand declined 12 per cent globally to a six-year low of 914.9 tonnes in the second quarter, mainly due to a decrease in demand from consumers in India and China, according to the World Gold Council. The demand stood at 1,038 tonnes in Q2 of 2014, the WGC Gold Demand Trends report for Q2 of 2015 showed. However, demand in Europe and the US grew, driven by a mixture of increasingly confident jewellery buyers and strong demand for bars and coins, the report added.
According to report, the overall jewellery demand was down 14 per cent at 513 tonnes, from 595 tonnes in 2014, due to fall in consumer spend in Asia, the report said.While in China the fall in jewellery demand was 5 per cent at 174 tonnes due to slow economic growth and a turbulent stock market, in India it dropped 23 per cent to 118 tonnes following heavy unseasonal rains in Q1 and drought in Q2 that impacted rural incomes and affected gold demand.In addition, a dearth of auspicious days for marriages in Q3 meant that wedding-related demand was unusually slow.
The report said total investment demand too was down 11 per cent during the second quarter at 179 tonnes compared with 200 tonnes in the same quarter of the previous year.Demand for bars and coins saw a 15 per cent drop to 201 tonnes from 238 tonnes in the previous year as the sector was affected by an expected increase in US interest rates and a continued shift towards other asset classes, notably equities, it pointed out.