Gold Price: The World Gold Council has predicted that gold demand in India, the world’s second-largest gold importer, will fall to its lowest level in four years this year due to rising prices.
Gold Price
Pune: The World Gold Council has predicted that gold demand in India, the world’s second-largest gold importer, will fall to its lowest level in four years this year due to rising prices.
Although demand for gold increased by eight per cent in the quarter ended March 31, 2024 as compared to the March quarter a year ago, the demand is likely to be affected as the price of gold has risen sharply at present, according to a report released by the World Gold Council.
Total gold demand from India in 2024 could be between 700 to 800 MT. If prices continue to rise, this demand will also fall further and overall consumption is likely to be the lowest in four years, said Sachin Jain, India CEO of the World Gold Council.
India, the world’s second largest consumer after China, consumed 761 tonnes of gold in 2023, a year-on-year decline of 1.7 per cent.
In the domestic market, gold prices touched a record high of Rs 73,958 per 10 grams in the month. In the financial year 2023-24, the price of gold has increased by more than 13 percent. It had increased by more than ten percent in the year 2022-23.
Rising gold prices are providing high returns to investors, thus fueling demand from an investment perspective. Gold consumption rose eight percent to 136.6 tonnes in the January-March 2024 quarter.
Gold in Q1 2024: In this video, Senior Analysts Louise Street and @KrishanGopaul discuss the key highlights of what was a record quarter for #gold. Watch here: https://t.co/XXqWhgqH10
— World Gold Council (@GOLDCOUNCIL) April 30, 2024
The report also said that the demand for investment gold increased by 19 per cent, while the demand for jewelery increased by four per cent. In the March quarter, old gold supplies rose ten percent from a year ago to 38.3 tonnes.
It is the second highest. The World Gold Council also said that the supply of old gold increased as some investors sold gold as prices rose. The report also said that the RBI has purchased 19 tonnes of gold in the March quarter, while last year the bank had purchased 16 tonnes of gold.
The demand for festivals is also low
Buying gold during festivals in India is considered auspicious. However, the demand for gold was low even on the auspicious occasion of Gudi Padwa in the month of April. Demand has been affected as prices hit record highs. Now demand may moderate during Akshaya Tritiya and Jain holy festivals, said Sachin Jain.
Highlights of the report
• The total demand for gold in the year 2024 is 700 to 800 MT
• In the March 2024 quarter, demand grew by eight per cent year-on-year
• Gold consumption in the year 2023 was 761 tonnes
• Over 13 percent increase in prices in FY24
• Ten percent increase in prices in FY23
• Demand for gold for investment increased by 19 per cent and for jewelery by four per cent in the March quarter
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