India's demand for gold has fallen by 6%, even as total spending on the precious metal reached a record high, according to the World Gold Council.

The latest figures suggest that while Indians continue to value gold for weddings, festivals, and investments, soaring prices are changing buying behavior. Consumers are increasingly opting for lighter jewellery, delaying purchases, or waiting for discounts and festive offers. Meanwhile, investment preferences are also evolving, with digital gold and other alternatives gaining traction as physical gold purchases slow.

India's Gold Demand Falls 6% Despite Record Spending | Why Indians Are Buying Less Gold

Is China stockpiling gold? It seems like that as the World Gold Council has reported a sharp rise in gold purchases by the central banks around the world. The council's November report states that central banks bought over 399 tons of gold between July and September this year.

WION Fineprint | China: 2022 gold purchase highest since 1967

India's&nbsp;gold&nbsp;demand&nbsp;is expected to fall to its&nbsp;lowest level in&nbsp;three&nbsp;years in 2019, the&nbsp;World&nbsp;Gold&nbsp;Council&nbsp;(WGC) said on Tuesday, as domestic&nbsp;prices&nbsp;climb to a&nbsp;record&nbsp;against a backdrop of falling earnings in rural areas, a key source of custom for the precious metal.

Gold&nbsp;demand&nbsp;in 2019 could drop 8 per cent&nbsp;from a&nbsp;year&nbsp;ago to around 700 tonnes, the&nbsp;lowest since 2016, said Somasundaram PR, the managing director of WGC's&nbsp;Indian operations. In a report, the WGC said&nbsp;India's&nbsp;gold&nbsp;consumption in the quarter ended September slumped nearly a third from a&nbsp;year&nbsp;ago to 123.9 tonnes.

The fall in consumption in the&nbsp;world's second-biggest market of the metal could brake global&nbsp;prices, up 17 per cent&nbsp;so far in 2019, but a drop in imports could also help ease the country's trade deficit, supporting the rupee.

"Along with higher&nbsp;prices,&nbsp;gold&nbsp;demand&nbsp;is getting affected by weak rural sentiment," said WGC official Somasundaram. "Excess monsoon rains have damaged crops," the official noted.

Two-thirds of&nbsp;India's&nbsp;gold&nbsp;demand&nbsp;comes from rural areas, where jewellery is a traditional store of wealth.

India&nbsp;received its highest monsoon rainfall in 25&nbsp;years during the June-September season, with rains continuing even in October, damaging summer-sown crops such as cotton, soybeans and pulses ready for harvesting.

In September, local&nbsp;gold&nbsp;futures&nbsp;hit&nbsp;an all-time high of 39,885 rupees&nbsp;per 10 grams. They have risen about 22 per cent&nbsp;so far in 2019, tracking a rally in global&nbsp;prices&nbsp;as well as reflecting a depreciation in the rupee.

A spike in domestic&nbsp;gold&nbsp;prices&nbsp;and a hike in the import duty slashed&nbsp;demand&nbsp;during the July-September, the WGC said. In the first week of July,&nbsp;India&nbsp;raised the import duty on&nbsp;gold&nbsp;to 12.5 per cent&nbsp;from 10 per cent.

In the key quarter ending December&nbsp;31,&nbsp;demand&nbsp;is likely to be&nbsp;lower than last&nbsp;year's 236.5 tonnes, Somasundaram said, but the drop is unlikely to be as steep as in the July-September quarter.

Demand&nbsp;usually rises in the October-December quarter due to the wedding season and festivals such as Diwali, when buying bullion is considered auspicious.

Many&nbsp;Indians are using the rally in&nbsp;prices&nbsp;to liquidate their&nbsp;gold&nbsp;ornaments, the WGC official said, forecasting scrap&nbsp;gold&nbsp;supplies in&nbsp;India&nbsp;could jump 38 per cent&nbsp;in 2019 to around 120 tonnes.

India's gold demand is expected to fall to its lowest level in three years in 2019, the World Gold Council (WGC) said on Tuesday, as domestic prices climb to a record against a backdrop of falling earnings in rural areas, a key source of custom for the precious metal.

India's gold demand is expected to fall to its lowest level in three years in 2019, the World Gold Council (WGC) said on Tuesday, as domestic prices climb to a record against a backdrop of falling earnings in rural areas, a key source of custom for the precious metal. Gold demand in 2019 could drop 8 per cent from a year ago to around 700 tonnes, the lowest since 2016, said Somasundaram PR, the managing director of WGC's Indian operations. In a report, the WGC said India's gold consumption in the quarter ended September slumped nearly a third from a year ago to 123.9 tonnes. The fall in consumption in the world's second-biggest market of the metal could brake global prices, up 17 per cent so far in 2019, but a drop in imports could also help ease the country's trade deficit, supporting the rupee. "Along with higher prices, gold demand is getting affected by weak rural sentiment," said WGC official Somasundaram. "Excess monsoon rains have damaged crops," the official noted. Two-thirds of India's gold demand comes from rural areas, where jewellery is a traditional store of wealth. India received its highest monsoon rainfall in 25 years during the June-September season, with rains continuing even in October, damaging summer-sown crops such as cotton, soybeans and pulses ready for harvesting. In September, local gold futures hit an all-time high of 39,885 rupees per 10 grams. They have risen about 22 per cent so far in 2019, tracking a rally in global prices as well as reflecting a depreciation in the rupee. A spike in domestic gold prices and a hike in the import duty slashed demand during the July-September, the WGC said. In the first week of July, India raised the import duty on gold to 12.5 per cent from 10 per cent. In the key quarter ending December 31, demand is likely to be lower than last year's 236.5 tonnes, Somasundaram said, but the drop is unlikely to be as steep as in the July-September quarter. Demand usually rises in the October-December quarter due to the wedding season and festivals such as Diwali, when buying bullion is considered auspicious. Many Indians are using the rally in prices to liquidate their gold ornaments, the WGC official said, forecasting scrap gold supplies in India could jump 38 per cent in 2019 to around 120 tonnes.

India gold demand to hit three-year low as prices surge to record: World Gold Council

&nbsp;Global gold demand grew to 1,053.3 tonnes in the first quarter of 2019, up by seven per cent as compared to the last corresponding period, the World Gold Council (WGC) said on Thursday.

The increase was largely due to continued growth in central bank buying as well as growth in gold-backed<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/sensex-nifty-fall-as-jet-airways-stocks-bleed-211510&amp;sa=U&amp;ved=2ahUKEwjVmoPzyPzhAhXErY8KHU8yB3k4HhAWMAV6BAgAEAI&amp;usg=AOvVaw1RpazSNyU0lJTfkqHit415"> exchange traded funds</a> (ETFs), WGC said in its latest report on gold demand trends.

&nbsp;India`s demand for gold jewellery hit a four-year high during January to March.

"A lower local rupee gold price in late February and early March coincided with the traditional gold buying wedding season, lifting jewellery demand to 125.4 tonnes, a 5 per cent increase on the same period last year and the highest Q1 since 2015.

"This helped the overall gold demand for jewellery at global level inch nearly one per cent higher to 530.3 tonnes despite two per cent decline in China`s demand for gold jewellery estimated at 184.1 tonnes, said WGC.

Central banks bought 145.5 tonnes of gold in Q1, up 68 per cent as compared to the corresponding period in 2018 and representing the strongest start to a year since 2013.

Diversification and a desire for safe, liquid assets were again the main drivers of the purchases.

On a rolling four-quarter basis, gold buying reached a record high for our series of 715.7 tonnes, said the WGC.

ETFs and similar products added 40.3 tonnes in Q1, up 49 per cent on last year.

Funds listed in the United States and Europe benefitted from the largest inflows, although the former was more erratic while the latter was underpinned by continued geopolitical instability.

Bar and coin investment softened slightly, down one per cent to 257.8 tonnes.

This was purely due to a fall in demand for<a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/india-news/lok-sabha-poll-2019-madhya-pradesh-cm-kamal-naths-son-nakul-assets-worth-over-rs-660-crore-209093&amp;sa=U&amp;ved=2ahUKEwim_LugyfzhAhUa8HMBHWTlAI4QFjAGegQIBBAC&amp;usg=AOvVaw1POZz8vduaMJkpdu7I4SKo"> gold bars</a>, as official gold coin buying grew 12 per cent to 56.1 tonnes.

China and Japan were the main contributors to the decline.

In Japan, net investment turned negative on profit-taking following a surge in the local price in February.

Gold used in applications such as electronics, wireless and LED lighting fell three per cent to 79.3 tonnes.

Trade frictions, sluggish sales of consumer electronics and global economic headwinds hit the technology sector.

"The beginning of 2019 saw a sharp recovery in investor sentiment in both the equity and debt markets, but the appetite for gold remained solid," said Alistair Hewitt, WGC`s Head of Market Intelligence.

The total supply of gold was largely unchanged in Q1 at 1,150 tonnes.

Modest growth in mine production and recycling was offset by a decline in net hedging.

Mine production and recycling levels saw small increases compared with Q1 2018, rising to 852.4 tonnes and 287.6 tonnes, said WGC in a statement.

&nbsp;

Global gold demand grew to 1,053.3 tonnes in the first quarter of 2019, up by seven per cent as compared to the last corresponding period, the World Gold Council (WGC) said on Thursday.

Global gold demand grew to 1,053.3 tonnes in the first quarter of 2019, up by seven per cent as compared to the last corresponding period, the World Gold Council (WGC) said on Thursday. The increase was largely due to continued growth in central bank buying as well as growth in gold-backed exchange traded funds (ETFs), WGC said in its latest report on gold demand trends. India`s demand for gold jewellery hit a four-year high during January to March. "A lower local rupee gold price in late February and early March coincided with the traditional gold buying wedding season, lifting jewellery demand to 125.4 tonnes, a 5 per cent increase on the same period last year and the highest Q1 since 2015. "This helped the overall gold demand for jewellery at global level inch nearly one per cent higher to 530.3 tonnes despite two per cent decline in China`s demand for gold jewellery estimated at 184.1 tonnes, said WGC. Central banks bought 145.5 tonnes of gold in Q1, up 68 per cent as compared to the corresponding period in 2018 and representing the strongest start to a year since 2013. Diversification and a desire for safe, liquid assets were again the main drivers of the purchases. On a rolling four-quarter basis, gold buying reached a record high for our series of 715.7 tonnes, said the WGC. ETFs and similar products added 40.3 tonnes in Q1, up 49 per cent on last year. Funds listed in the United States and Europe benefitted from the largest inflows, although the former was more erratic while the latter was underpinned by continued geopolitical instability. Bar and coin investment softened slightly, down one per cent to 257.8 tonnes. This was purely due to a fall in demand for gold bars, as official gold coin buying grew 12 per cent to 56.1 tonnes. China and Japan were the main contributors to the decline. In Japan, net investment turned negative on profit-taking following a surge in the local price in February. Gold used in applications such as electronics, wireless and LED lighting fell three per cent to 79.3 tonnes. Trade frictions, sluggish sales of consumer electronics and global economic headwinds hit the technology sector. "The beginning of 2019 saw a sharp recovery in investor sentiment in both the equity and debt markets, but the appetite for gold remained solid," said Alistair Hewitt, WGC`s Head of Market Intelligence. The total supply of gold was largely unchanged in Q1 at 1,150 tonnes. Modest growth in mine production and recycling was offset by a decline in net hedging. Mine production and recycling levels saw small increases compared with Q1 2018, rising to 852.4 tonnes and 287.6 tonnes, said WGC in a statement.

Gold demand up 7 pc to 1,053 tonnes, India's gold jewellery demand highest since 2015