Broad demand worries in global and local markets and poor technical picture for COMEX Gold kept the proceedings lax and the prices fell near their one year low. The yellow metal did see some buying thereafter and ended above $ 1220 per ounce but the overall undertone in the market remains tepid. MCX Gold futures closed at Rs 29650 per 10 grams.
Indian gold demand was down from a strong Q2 2017, falling 8% to 147.9 tonnes (t) in Q2 2018 due to high local prices and seasonal factors, but was in line with the long-term average, according to a latest update from the World Gold Council (WGC). The y-o-y drop in demand was magnified by the jump in demand seen in Q2 last year when consumers rushed to make gold purchases before GST was implemented on 1 July. Global demand showed a grim picture.
Global Gold demand slipped 6% in the first half of this year following a sharp decline in purchases for investment purposes, the World Gold Council (WGC) said in a report. Total global demand for gold was 1,959.9 tonnes over January-June, down from 2,086.5 tonnes in the same period last year and the lowest first-half total since 2009, the WGC said in its latest Gold Demand Trends report. For the second quarter, demand was down 4% year-on-year at 964.3 tonnes. Purchases of gold for investment fell 9%, driven by a 46% decline in ETF buying. Central bank purchases dropped 7% over April-June period.