Rising demand: India's gold purchases go up 5% in 2024

INDIA'S GOLD IMPORTS rose 5% to 802.8 tonne on a year-on-year basis in 2024 due to high investment demand and big purchases by the Reserve Bank of India (RBI), according to the latest data by the World Gold Council.

- RAJESH BHAYANI

However, high prices dented jewellery demand by 2% to 563.4 tonne.

The total investment demand for 2024 increased by 29% to 239.4 tonne and in the December quarter, it rose 14% to 76 tonne.

Gold investment gained momentum due to "rising gold prices and relatively lacklustre performance of other assets, with domestic stock markets generating mediocre returns in first half of the year and ending the year with a notable downward correction after touching record highs in the September quarter", the report said.

What is notable is at high prices customers are encashing gold with cash which has increased 16% to 29.6 tonne in the December quarter.

The RBI added a whopping 73 tonne – four-and-a-half times higher than 16 tonne in 2023 – to its foreign exchange reserves. The share of gold in forex reserves rose to its highest ever at 11%.