Gold demand in India in July-September up 10% on lower prices
gold demand in India increased 10% year-on-year in the quarter to September to 210 tonnes due to lower prices. Much of this demand came from rural India which accounts for 60% of India’s annual consumption, which is pegged at 700-750 tonnes for 2023 by the World Gold Council (WGC), a little lower than it was last year.
Globally, the WGC Q3 Gold Demand Trends report reveals, support for the asset continues as central bank buying maintains a historic pace, bringing quarterly gold demand to 1,147 tonnes, 8% higher than its five-year average.
Gold jewellery sales in India increased 7% year-on-year to 155.7 tonnes, aided by softer gold prices and festive demand, which was more pronounced in southern India.
Gold prices fell to Rs 57,000 per 10 gm in August and September, after climbing to Rs 60,000 per 10 gm in July, spurring retail demand.
“Investment gold demand, that is bars and coins, jumped 20% to 54.5 tonnes from 45.4 tonnes in Q3 of the previous year,” said Somasundaram PR, regional CEO, India at the World Gold Council. “Price correction was a major factor that triggered the latent demand, which we believe continues to be strong, underpinned by strong positive economic sentiment, mixed with uncertainties arising from a variety of factors such as fear of inflation, below-normal monsoon and global developments.”
The October-December quarter is expected to see the seasonal boost amid festivals and wedding purchases, but any sharp price rise could delay the release of pent-up demand following a relatively weak first half of the year, according to the WGC.
