New Delhi: India’s gold demand rose to 136.6 tonnes in the January-March quarter, showing a growth of 8 per cent compared to the same quarter last year, according to data released by the World Gold Council (WGC) on Tuesday.
According to market analysts, gold purchases have increased despite rising prices, reflecting higher incomes in the growing economy. Of the total gold demand, jewelery demand in India increased by 4 percent from 91.9 tonnes to 95.5 tonnes. Total investment demand (in the form of bars, coins and others) increased by 19 percent to 41.1 tonnes from 34.4 tonnes.
India’s gold demand in value terms increased 20 per cent to Rs 75,470 crore during the quarter compared to the same period last year. The increase in demand was mostly from investors who viewed gold as a safe-haven asset amid rising geopolitical tensions in the Middle East and the Russia-Ukraine war.
The Reserve Bank of India has also increased purchases of the precious metal, increasing its gold reserves by 19 tonnes in the January-March quarter this year, surpassing last year’s net purchase of 16 tonnes, the WGC said. Is.
Sachin Jain, CEO of WGC’s Indian operations, said gold demand from India is likely to be between 700 to 800 metric tonnes in 2024, with the figure moving closer to the lower band if prices continue to rise.
Domestic gold prices hit an all-time high of Rs 73,958 per 10 grams in April after a sustained rise of over 13 per cent in 2024. This increase is on top of a 10 percent increase in 2023.
Jain said investors are getting higher returns due to rising gold prices, but consumption in jewelery is decreasing due to high cost.
Gold prices further rose this month due to increased purchasing of gold during the Gudi Padwa festival. According to jewellers, the sharp increase in prices may lead to some reduction in gold purchases during the Akshaya Tritiya festival as compared to last year.
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2024-05-01 20:51:17