India sees 10% surge in Gold demand

India, the world's second-largest consumer of gold, experienced a 10% uptick in demand during the third quarter of 2023, totaling 210.2 tonnes. This growth was attributed to softened gold prices and heightened festive demand, as reported by the World Gold Council (WGC). According to WGC India Regional CEO Somasundaram PR, the recent price softening played a role, and the upcoming Dhanteras festival and wedding season are anticipated to be key influencers.

Feedback from the trade indicates consumer acceptance of the Rs 60,000 per ten-gram price point. A potential downward correction could trigger a notable surge in demand. Dhanteras holds significant auspiciousness in Hindu tradition, particularly for acquiring precious metals and other valuables.

The WGC's quarterly report revealed that India's gold demand increased from 191.7 tonnes in the year-ago period to 210.2 tonnes in Q3 2023. Jewelry demand rose by 7% to 155.7 tonnes, while bar and coin demand saw a 20% increase to 54.5 tonnes. Notably, bar and coin investment reached a Q3 peak not seen since 2015. The report also noted a rise in India's gold imports, from 184.5 tonnes in the year-ago period to 220 tonnes in Q3 of this year.