CHENNAI: Demand for gold may have dropped 7% globally during the July-September quarter, but there was no dent in purchases of the yellow metal in India, rising 47% to over 139 tonnes by volume. The growth was driven by falling Covid infection rates, which pushed people to venture out and shop, the latest report by World Gold Council (WGC) said.

WGC’s regional CEO (India) Somasundaram P R said, “Gold jewellery demand increased by 58% to 96 tonnes, while investment demand for bars and coins also grew by 18% in a quarter that tends to be seasonally subdued due to monsoons.” Inauspicious periods like Pitru-Paksha are also known to keep buyers away.

In the Indian market, gold demand by value stood 37% higher at Rs 59,330 crore in second quarter of this fiscal year, as compared to the previous year. The total investment demand rose by 27% at 42.9 tonnes.