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India's Gold demand rises despite Price increase | Hindustan Dot
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India’s Gold demand rises despite Price increase

Gold Demand in India Rises 8% in Q1 Despite Higher Prices: WGC.

According to the World Gold Council (WGC), India’s gold demand grew 8% year-on-year in the January-March quarter to 136.6 tonnes. Analysts attribute this to stronger incomes amid economic growth, countering elevated rates.

According to the report, jewellery purchases rose 4% to 95.5 tonnes, while investment demand for bars and coins surged 19% to 41.1 tonnes. Value-wise, consumption jumped 20% to Rs 75,470 crore during this period versus last year.

Geopolitical tensions and the continuing Russia-Ukraine conflict drove safe-haven buying by investors. Official reserves rose 19 tonnes versus 16 tonnes a year ago.

However, experts warn that domestic prices, which reached a record high of Rs 73,958/10g in April after a 13% year-on-year spike, could dent demand.

WGC CEO for India Sachin Jain expects yearly intake between 700 and 800 tonnes but nearer the lower band if inflation persists.

Rising prices are boosting investor returns yet denting seasonal purchases like Akshaya Tritiya. Jewellers foresee some moderation against last year.

Monetary conditions are expected to remain restrictive to tame costs, so the dynamics of India’s gold industry will depend on salary rises and commodity cost trajectories going forward.

HD News Desk

From local issues to national events and global affairs, Hindustan Dot's news desk covers the latest news and developments from India and the world.

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