Gold demand in India saw a 5 per cent rise during the January-March quarter of 2019, driven by a fall in prices that boosted jewellery sales during the wedding season, according to estimates by World Gold Council.

Overall gold demand during the quarter was at 159 tonnes against 151.5 tonnes in the corresponding previous quarter. In terms of value, there was a 13 per cent growth during the quarter at Rs 47,010 crore compared with Rs 41,680 crore in the same period last year.

“The strengthening of the rupee and the fall in local gold prices towards the later part of the quarter triggered a rise in Q1 (first-quarter, January to March) gold demand. Growth of 5 per cent in Indian jewellery demand to 125.4 tonnes uplifted global demand and boosted retail sentiment,” said Somasundaram P.R., managing director-India, World Gold Council.

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“The increase in auspicious wedding days during the quarter — three times as many as those in Q1 2018 — was also crucial in the rise of demand,” he added.

Also, he said, there was a jump in volume as election-related checks controlled the grey market, which benefited the organised retail industry.

Total jewellery demand in the first quarter was up 5 per cent at 125.4 tonnes compared with 119.2 tonnes in the corresponding period of 2018. In value, jewellery demand grew 13 per cent to Rs 37,070 crore against Rs 32,790 crore in the same quarter of 2018.

Total investment demand for Q1 of 2019 was up 4 per cent at 33.6 tonnes from 32.3 tonnes in the same period of 2018.

In value terms, gold investment demand went up by 12 per cent to Rs 9,940 crore from Rs 8,890 crore in first quarter of 2018.