INDIA'S GOLD DEMAND UP 10% AT 210.2 TONNES IN Q3

Feedback from the trade indicates that consumers have embraced the price point of Rs 60,000 per ten grams, and any reduction in this price could potentially lead to a substantial increase in demand.

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Gold demand in India, the world’s second-largest consumer of the yellow metal, rose 10 per cent to 210.2 tonnes during the third quarter of this calendar year, aided by the softening of gold prices and festive demand, according to the World Gold Council (WGC).

Speaking to the media, WGC India Regional CEO Somasundaram PR said gold prices softened a bit during the last quarter but now they have started inching up. Prices will play a critical role during the Dhanteras festival and wedding season in the next two months.

Trade feedback is that consumers have accepted the Rs 60,000 per ten-gram price point, so a downward correction could trigger a significant jump in demand. Dhanteras is considered the most auspicious day in the Hindu calendar for buying items ranging from precious metals to utensils, to other valuables.

Releasing the quarterly gold demand report, the WGC said India’s gold demand increased to 210.2 tonnes during the third quarter of the 2023 calendar year, from 191.7 tonnes in the year-ago period.