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Informist, Wednesday, Oct. 30, 2024

 

--WGC: India's gold demand in Jul-Sept at 248.3 tn, up 18% on year

--WGC: India Jul-Sept net bullion imports 360.2 tn vs 193 tn year ago

--WGC: India gold dore import in Jul-Sept at 96.6 tn vs 79.9 tn yr ago

--WGC: India Jul-Sept gold jewellery demand at 171.6 tn, up 10% on yr

--WGC: India Jul-Sept gold recycling at 23.4 tn vs 19.2 tn year ago

--WGC: India Jul-Sept gold investment demand at 76.7 tn, up 41% on year

 

MUMBAI – Demand for gold in India rose 18% on year to 248.3 tonnes in the September quarter due to a rise in jewellery consumption and investment in gold during the period, the World Gold Council said in its Gold Demand Trends report released Wednesday. Demand for the yellow metal was 210.2 tonnes in the same period last year. In terms of value, India's gold demand during the quarter surged 52% on year to INR 1.65 trillion compared with INR 1.08 trillion in the same period last year.

 

"India's gold demand in Q3 2024 (Jul-Sept) witnessed an 18% year-on-year increase. Sharp cut in gold import duties in July sparked a revival in jewellery demand, which posted its strongest third quarter since 2015," said Sachin Jain, chief executive officer of World Gold Council India.

 

India's demand for gold jewellery rose 10% on year to 171.6 tonnes in the September quarter. "The duty cut negated much of the rise in gold prices during August, which encouraged some early purchases for weddings scheduled over the next couple of quarters, as well as drawing out pent-up demand from previous quarters," Jain said. "Good monsoons also acted as a tailwind for robust growth in lower tier cities and rural areas."

 

During Jul-Sept, investment demand for bullion surged 41% on year to 76.7 tonnes, the highest level for the September quarter since 2012. Investor optimism and bullish price expectations were accelerated by the July duty cut-led price correction, which allowed many investors to enter the market.

 

"India’s gold demand remains solid in the fourth quarter due to Dhanteras and wedding demand, although with the continued rise in the gold price offsetting the impact of the duty cut, we may see an increased trend for investors to wait for price corrections as opportunities to add to their holdings," Jain said.

 

Gold reserves with the Reserve Bank of India increased 13 tonnes during the September quarter. The RBI has added gold to its reserves on each month of the quarter, adding 13 tonnes in Jul-Sept, marginally lower than the 18 tonnes purchased in both Jan-Mar and Apr-Jun, the report said. Its gold reserves have risen to 854 tonnes as of Sep.30, 6% higher than at the end of 2023, the WGC said.

 

India's net bullion imports rose to 360.2 tonnes in Jul-Sept from 193 tonnes a year ago, and were up 111.5% from 170.3 tonnes a quarter ago. The import of gold dore rose to 96.6 tonnes from 79.9 tonnes a year ago.

 

"Flows of smuggled gold into India all but disappeared thanks to the duty cut," Jain said. "India is on course for a very strong year, as year-to-date investment is already approaching the annual totals of the past four years. We expect full year gold demand to be in the range of 700-750 tonnes," he said.

 

Gold recycling rose to 23.4 tonnes in the September quarter from 19.2 tonnes a year ago. "Another consequence of the duty cut was selling by gold loan companies, which auctioned some holdings following the rupee-denominated fall in gold in order to limit losses from the non-performing loans," Jain. End

 

US$1 = INR 84.08

 

Reported by Sandeep Sinha

Edited by Tanima Banerjee

 

 

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