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India's gold demand witnesses 18% growth during July-September quarter

31 Oct 2024 Evaluate

World Gold Council (WGC) in its report said that India's gold demand witnessed an 18 per cent on-year growth during the July-September quarter of this year to 248.3 tonnes, as the reduction in gold import duty resulted in a revival in jewellery demand. The overall gold demand during the corresponding quarter of last year stood at 210.2 tonnes, according to the WGC's Q3 2024 Gold Demand Trends report. 

However, with gold prices ruling at all-time highs, there might be an increased trend for investors to wait for price corrections. The full-year gold demand is likely to be in the range of 700-750 tonnes, slightly less than last year, as Dhanteras and wedding season is likely to boost overall gold demand. In 2023, India's gold demand stood at 761 tonnes. 

Total jewellery demand during the July-September period increased by 10 per cent to 171.6 tonnes, compared to 155.7 tonnes in the same period in 2023.  The report revealed that the Reserve Bank of India continued its 2024 buying streak, adding gold to its reserves every month during the quarter. RBI bought a total of 13 tonnes in Q3, marginally lower than the 18 tonnes it purchased in both Q1 and Q2 of this year. This has increased India's gold reserves to 854 tonnes in 2024, 6 per cent higher than at the end of 2023. 

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