Demand for gold in India demonstrated robust growth during the July-September period of this year, with the World Gold Council reporting an 18% year-over-year increase, reaching 248.3 tonnes in the third quarter. This surge was driven by a notable rise in both jewellery consumption and investment in gold.
According to the Gold Demand Trends report released by the global organization, the value of India’s gold demand soared by 52% year-over-year, totaling ₹1.65 lakh crore, compared to ₹1.08 lakh crore during the same period last year.
Sachin Jain, Chief Executive Officer of World Gold Council India, highlighted that a significant reduction in gold import duties in July rejuvenated jewellery demand, marking the strongest third quarter since 2015.
Jewellery Demand Soars
In the September quarter, India’s demand for gold jewellery increased by 10% year-over-year, amounting to 171.6 tonnes. This growth was particularly influenced by wedding-related purchases. Jain noted that the reduction in duties counteracted much of the gold price rise observed in August, encouraging early purchases for weddings scheduled in the coming months and tapping into previously pent-up demand. He also pointed out that favorable monsoon conditions contributed positively to growth in lower-tier cities and rural areas.
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