(*19*)Despite the rising value, the demand for gold is rising in India. According to a World Gold Council report titled ‘Gold Demand Trends Q1 2024’, India has registered a development in gold demand in the quarter of March in comparison with the identical interval final 12 months.
Between January and March 2023, the gold demand in India was 126.3 tonnes, and with an 8 per cent enhance, it reached 136.6 tonnes for a similar interval this 12 months. Based on valuation, the demand for gold has elevated by 20 per cent to 75,470 crores. The demand for gold ornaments has additionally risen by 4 per cent from 91.9 per cent to 95.5 per cent. In phrases of gold bars and cash, the demand has registered a 19 per cent Y-o-Y enhance. Earlier in 2023, it was 34.4 tonnes which has elevated to 51.1 tonnes.
Investor sentiment remained optimistic regardless of rising costs
Traditionally, gold is taken into account a secure funding in India. Whether it’s in the type of jewelry or gold bonds or different types of buy, Indians really feel secure to take a position in gold. Interestingly, the present rise in demand comes at a time when the worth of gold has skyrocketed to an all-time excessive. Recently, the gold value touched a excessive of Rs. 74,000 per 10-gram. Statistically confirmed, markets like China and India present rise in demand if the worth of gold plunges or fluctuates. However, the latest enhance in demand is opposite to this development. This exhibits that investor sentiment in direction of gold has been optimistic.
Moreover, this demand was additional fueled by the Reserve Bank of India’s gold buy. In the primary three months of 2024, the RBI bought a complete of 19 tonnes of gold, which is 3 tonnes greater than its buy for a similar interval final 12 months. Apart from the RBI, the big fund homes had additionally resorted to gold funding as essentially the most trusted possibility.
