Demand for gold in India grew by 10% to 210.2 tonnes in Q3 2023 (July-September) as in contrast with general demand of 191.7 tonnes, in the yr in the past interval in accordance to knowledge launched by the World Gold Council (WGC).
Total gold imports into India in the quarter was 220 tonnes, up by 19% in contrast with 184.5 tonnes in the yr in the past interval.
Total jewelry demand in India for the quarter elevated by 7% at 155.7 tonnes as in contrast with 146.2 tonnes a yr in the past aided by a dip in gold prices and festive demand. Demand for jewelry was extra pronounced in South India, a prime WGC official stated.
“Investment gold demand, that is bars and coins, jumped 20% to 54.5t from 45.4t in Q3 of the previous year,” stated P.R. Somasundaram, Regional CEO, India, WGC. “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,” he added..
Total gold recycled in India in Q3 was 19.2 tonnes, up by 20% in contrast to 16 tonnes in the identical interval final yr. “We believe recycling will continue to grow as initiatives of organised players to increase recycling of jewellery start gathering steam. With HUID in place, policy and tax incentives for recycling of HUID marked pieces can be enabled to grow recycling,” Mr. Somasundaram stated.
He stated the final quarter of 2023 would get the same old seasonal enhance due to festivals and wedding ceremony purchases, nonetheless any sharp worth rise might delay demand.
“Trade feedback is that consumers have accepted the ₹60,000 per 10g price point, so a downward correction could trigger a significant jump too,” he stated.
“With first nine months demand at 481.2t, our estimate for full year gold demand is in the range of 700-750t, marginally lower than last year demand of 774t,” Mr. Somasundaram added.
