Gold Demand Increases Due to the festival of Diwali, Dhanteras and the season of weddings, there has been a tremendous increase in the demand for gold in India. India’s gold demand grew 47 per cent year-on-year to 139.1 tonnes in the July-September quarter. According to the World Gold Council (WGC), the demand for gold has picked up after strengthening economic activity and improving consumer demand.
Gold demand reaches pre-COVID level
According to the World Gold Council, the demand for gold in India is once again approaching the pre-COVID level and may see a further increase going forward. The Gold Demand Trends 2021 report for the third quarter of the World Gold Council states that the total demand in the country stood at 94.6 tonnes of gold during the September quarter of 2020. According to Somasundaram PR, India’s regional CEO of the World Gold Council, with the rapid increase in vaccination and the falling Covid infection rate, success in controlling the epidemic seems to have been achieved, which has led to the return of economic activity. He said that there should not be much import in the fourth quarter as the stock of the festive season has already arrived during the third quarter of 2021.
Expected to increase demand in festivals and weddings
Sosundaram said, with the gradual lifting of restrictions across the country, retail demand is coming back to pre-COVID levels. There is more enthusiasm towards the demand for gold in the coming festive and wedding season. He further said that the demand for digital gold has also increased manifold. New Technology Initiatives The tie-up with digital gold and UPI platform from leading jewelers has boosted online buying of buyers and investors.
According to the report, overall jewelery demand in India grew by 58 per cent to 96.2 tonnes in the third quarter, as against 60.8 tonnes during the July-September quarter of 2020. The total investment demand for the third quarter grew by 27 per cent to 42.9 tonnes from 33.8 tonnes in the same quarter of 2020. According to the report, the demand for gold in value terms increased by 19 per cent to Rs 18,300 crore in July-September from Rs 15,410 crore a year ago.
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