IANS | 30 Apr, 2024
India's gold demand rose to 136.6 tons in the January-March quarter
which represents an 8 per cent increase over the same quarter of the
previous year, according to figures released by the World Gold Council
(WGC) on Tuesday.
Gold purchases have increased despite rising
prices, reflecting higher incomes in a growing economy, according to
market analysts.
Out of the total gold demand, the jewellery
demand in India increased by 4 per cent to 95.5 tonne from 91.9 tonne.
The total investment demand (in the form of bar, coin among others) grew
19 per cent to 41.1 tonne from 34.4 tonne.
India's gold demand in value terms rose 20 per cent to Rs 75,470 crore during the quarter compared to the same period last year.
The
increase in the demand was higher from investors who saw gold as a
safe-haven asset amid rising geopolitical tensions in the Middle East
and the Russia-Ukraine war.
The Reserve Bank of India also stepped
up buying of the precious metal which saw its gold reserves increasing
by 19 tons in the January-March quarter this year, surpassing last
year's net purchases of 16 tons, the WGC said.
Demand for gold
from India is likely to range between 700 and 800 metric tons in 2024,
with the figure falling near the lower band if prices continue to
increase, said Sachin Jain, CEO of WGC's Indian operations.
Domestic
prices of gold soared to a lifetime high of Rs 73,958 per 10 grams in
April after steadily rising by more than 13 per cent in 2024. The
increase comes on top of a 10 per cent rise in 2023.
Rising gold
prices are leading to higher returns for investors, but the consumption
demand for use in jewellery is being dampened due to the higher cost,
Jain said.
Increased purchases of gold during the Gudi Padwa
festival further fuelled gold prices this month. The sharp increase in
prices could lead to some moderation in gold purchases during the
Akshaya Tritiya festival compared to last year, according to jewellers.