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HomeLatest NewsBusinessIndias Gold Demand Rises 8% In Jan-march Despite Soaring Prices

Indias Gold Demand Rises 8% In Jan-march Despite Soaring Prices


Mumbai: India’s gold demand rose to 136.6 tons within the January-March quarter which represents an 8 per cent enhance over the identical quarter of the earlier yr, in keeping with figures launched by the World Gold Council (WGC) on Tuesday.

Gold purchases have elevated regardless of rising costs, reflecting greater incomes in a rising economic system, in keeping with market analysts.

Out of the overall gold demand, the jewelry demand in India elevated by 4 per cent to 95.5 tonne from 91.9 tonne. The overall funding demand (within the type of bar, coin amongst others) grew 19 per cent to 41.1 tonne from 34.4 tonne.

India’s gold demand in worth phrases rose 20 per cent to Rs 75,470 crore throughout the quarter in comparison with the identical interval final yr.

The rise within the demand was greater from buyers who noticed gold as a safe-haven asset amid rising geopolitical tensions within the Center East and the Russia-Ukraine conflict.

The Reserve Financial institution of India additionally stepped up shopping for of the valuable metallic which noticed its gold reserves rising by 19 tons within the January-March quarter this yr, surpassing final yr’s web purchases of 16 tons, the WGC mentioned.

Demand for gold from India is prone to vary between 700 and 800 metric tons in 2024, with the determine falling close to the decrease band if costs proceed to extend, mentioned Sachin Jain, CEO of WGC’s Indian operations.

Home costs of gold soared to a lifetime excessive of Rs 73,958 per 10 grams in April after steadily rising by greater than 13 per cent in 2024. The rise comes on prime of a ten per cent rise in 2023.

Rising gold costs are resulting in greater returns for buyers, however the consumption demand to be used in jewelry is being dampened as a result of greater value, Jain mentioned.

Elevated purchases of gold throughout the Gudi Padwa pageant additional fuelled gold costs this month. The sharp enhance in costs may result in some moderation in gold purchases throughout the Akshaya Tritiya pageant in comparison with final yr, in keeping with jewellers.

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