newsdesk@business-northeast.com

+91 6026176848

More forecasts: New York weather 30 days

Duty cut boosts India's gold demand to 248.3 ton, up 18 pc in Q3 by WGC

BNE News Desk , October 30, 2024
Spread the love
Share on Twitter

Mumbai: India's gold demand surged 18 pc year-on-year in the July-September quarter of 2024, reaching 248.3 tonnes, up from 210.2 tonnes in the same period last year, according to the World Gold Council (WGC). This increase is largely attributed to a reduction in gold import duty, which revived jewellery demand, pushing it to its strongest third quarter since 2015, with a 10 pc rise to 171.6 tonnes.

India's Gold Demand Soars Amid Record Prices, Driven by Strong Consumer Interest and Increased Imports

Despite gold prices hitting record highs—recently reaching Rs 81,400 per 10 grams—investors may hold back on purchases, waiting for price corrections. The WGC projects full-year gold demand to be between 700-750 tonnes, slightly lower than the 761 tonnes seen in 2023, influenced by the upcoming Dhanteras and wedding seasons. In monetary terms, gold demand rose 53 pc to Rs 1,65,380 crore during Q3 2024, reflecting robust consumer interest. The total investment demand in this quarter also increased significantly by 41 pc to 76.7 tonnes compared to 54.5 tonnes in Q3 2023. This trend indicates growing investor optimism, particularly following the July duty cut that had a positive impact on market conditions. 

Gold imports for the quarter jumped 87 pc to 360.2 tonnes, up from 193 tonnes last year, driven by strong demand in lower-tier cities and rural areas, aided by favorable monsoon conditions. The report noted a 22 pc increase in recycled gold jewellery, reaching 23.4 tonnes. Additionally, the Reserve Bank of India continued to bolster its gold reserves, purchasing 13 tonnes in Q3, bringing total reserves to 854 tonnes—a 6 pc increase from the end of 2023.

WGC CEO Highlights Strong Growth in India's Gold Sector Driven by Duty Cuts, Consumer Demand, and RBI Purchases

Jain, WGC's Regional CEO for India, emphasized that the combination of duty cuts, increased consumer demand, and the RBI's buying spree is propelling strong growth in the gold sector. He noted that the duty reduction effectively curtailed smuggling, while also resulting in gold loan companies auctioning holdings to mitigate losses from non-performing loans. Looking ahead, while demand remains strong, the ongoing rise in gold prices may temper some investor activity as they seek price corrections before making purchases. Nevertheless, India's gold market is on track for a robust year, reflecting positive sentiment among consumers and investors alike.

ALSO READ: फोर्स मटर्सनि स्टकआ Q2 नि खामायनायाव 20% गोजौ सार्किटआव सौहैदों