Amid inflation and high gold prices, India's demand for the yellow metal declined sharply in the January-March quarter by 18 per cent to 135.5 tonnes, according to World Gold Council (WGC).
As per the report, the demand for gold was down 26 per cent to 94.2 tonnes on a year-on-year (YoY) basis.
Compared to 2021, the demand stood at 165.8 tonnes in the first three months of the year.
Speaking to ANI, Chairman of Bullion and Jewellers' Association, Yogesh Singhal, said the prices of gold rose due to the Ukraine-Russia war.
On the other hand, the budget of the consumers shrank, he added.
"The consumer demands light jewellery at a price of Rs 50,000 and when the price is at Rs 55,000, they stop coming," Singhal said.
He further said that when the price falls to around Rs 50,000, only then will the consumers return to the market.
"Earlier, on the occasion of Akshaya Tritiya, the demand used to be much more. Currently, the jewellers' markets are empty and the reason for that is a rise in the prices of gold," Singhal said.
Since the outbreak of the COVID-19 pandemic, he said, the jewellers' market has been impacted. "Until the situation gets better, the market will keep fluctuating," he added.
If the Ukraine-Russia war ends, the price of gold is expected to fall by a margin of Rs 2,000 to Rs 4,000, added Singhal.
( With inputs from ANI )
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