The World Gold Council in its latest report has said that gold demand in India declined 3% to 747.5 tonnes in 2023 and going ahead the spurt in demand could be anywhere between 800-900 tonnes, if prices hold out and are not significantly volatile. The country’s total gold demand stood at 774.1 tonnes in 2022. The fall in gold demand was mainly influenced by rising gold prices. Although consumer interest remained high, it lagged trade sentiment. October’s price correction during Navratri stimulated a robust consumer response, boosting Diwali sales in November.
The total jewellery demand in India dropped 6% to 562.3 tonnes in 2023, compared to 600.6 tonnes in the previous year. Meanwhile, the total gold investment demand in the country grew by 7% to 185.2 tonnes, compared to 173.6 tonnes in the previous year. Total gold imported to India in 2023 was 780.7 tonnes, up by 20% compared to 650.7 tonnes in 2022, primarily due to substantial inventory building by the trade.