New Delhi: Diwali Dhanteras There has been a sharp increase in the demand for gold in India during the festive and wedding season. 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), demand for gold picked up after economic activity strengthened and consumer demand improved.
Gold demand reaches pre-COVID levels
According to the World Gold Council, the demand for gold in India is once again approaching the pre-Covid level and may see further growth in the long run. The Gold Demand Trends 2021 report for the third quarter of the World Gold Council states that the total gold demand in the country stood at 94.6 tonnes during the September quarter of 2020.
According to Somasundaram PR, India’s regional CEO, World Gold Council, with a rapid increase in vaccination and falling Covid infection rates, success has been achieved in controlling the pandemic, leading to a return to economic activity. He said there was not much import in the fourth quarter as the festive season stock has already arrived during the third quarter of 2021.
Demand expected to increase in festivals and weddings
Somasundaram said, with the gradual lifting of restrictions across the country, retail demand is coming back to pre-COVID levels. There is more excitement about the demand for gold in the coming festive and wedding season. He further added that the demand for digital gold has also increased manifold. New Technology Initiatives Leading jewelers’ tie-up with Digital Gold and UPI platform has boosted online buying by buyers and investors.
As per 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. Overall investment demand grew by 27 percent to 42.9 in the third quarter. tonnes, from 33.8 tonnes in the same quarter in 2020. According to the report, gold demand grew 19 per cent to Rs 18,300 crore in July-September from Rs 15,410 crore a year ago.
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