India’s gold demand increased eight percent year-on-year to 136.6 tonnes in the January-March quarter on the back of a strong economic environment despite prices reaching historic highs. The World Gold Council gave this information. The purchase of gold by the Reserve Bank of India (RBI) also increased demand. India’s gold demand in value terms increased by 20 percent on an annual basis to Rs 75,470 crore in January-March this year. This is due to the increase in volumes as well as an 11 percent increase in quarterly average prices.
WGC released report
The World Gold Council (WGC) on Tuesday released its global report ‘Gold Demand Trends Q1 2024’. According to this, India’s total gold demand, which includes both jewelery and investment. It increased to 136.6 tonnes in January-March this year, which was 126.3 tonnes in the same period a year ago. Of the total gold demand in India, demand for jewelery increased by four percent to 95.5 tonnes. Total investment demand (in the form of bars, coins, etc.) increased by 19 percent to 41.1 tonnes.
Demand may remain at 800 tonnes
Sachin Jain, WGC’s regional chief executive in India, said the surge in gold demand confirms Indians’ enduring relationship with gold, news agency PTI reported. He said India’s continued strong macroeconomic environment remained supportive of gold jewelery consumption, although prices reached historic highs in March. This resulted in lower sales at the end of the quarter. Jain expects the demand for gold in India this year to be around 700-800 tonnes. He said that if prices continue to rise, demand may be at the lower end of this range. The demand for gold in the country in 2023 was 747. tonnes.
Asked about the factors driving demand growth, Jain told the agency that historically, the world’s eastern markets, including India and China, tend to turn around when prices are going down and there is volatility, Whereas in the western market, changes occur when prices are going up. He said that for the first time we have seen a complete reversal, where gold prices in the Indian and Chinese markets have turned upside down.
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