While gold prices have soared to fresh record highs in India, demand for the yellow metal in the country last year stood at 760.4 tonnes, lower by one per cent than the 771.2 tonnes consumed in 2017, said data from the World Gold Council. The agency predicts the full-year demand to be in the range of 750-850 tonnes, considering the impending elections and a likely increase in spending.The agency, which tracks prices of gold globally, said total jewellery demand in India for 2018 was down by 1 per cent at 598 tonnes as compared to 601.9 tonnes in the previous year. However, in value terms, demand was up by 5 per cent to Rs 166,610 crore, compared to Rs 158,420 crore in 2017. Showing a similar trend, total investment demand for last year was down by 4 per cent at 162.4 tonnes in comparison to 169.3 tonnes in 2017, though in value terms, gold investment demand was up by 2 per cent at Rs 45,250 crore. Total gold recycled in India in 2018 was 87.1 tonnes as compared to 88.4 tonnes in 2017.
"The trends since 2015 indicate rather clearly that transparency measures have had an impact on gold demand.There is an urgent need for the industry to organise and collectively address issues of trust and innovation, in order to face the inevitable next wave of transparency measures and grow gold's share of consumer spend," said Somasundaram PR, Managing Director, India, World Gold Council.Global gold demand reached 4,345.1 tonnes in 2018, up 4 per cent on 2017 and in line with five-year average demand of 4,347.5 tonnes, said the World Gold Council. Meanwhile, gold prices have soared to over Rs 34,000 per 10 gram in the past few days, one of the highest in the past six years, due to Fed rate revision expectations and US-China trade talks.