Sky-High Gold Prices Dent Retail Demand, Says WGC

The high gold prices are likely to dent wedding-season demand too, WGC report said.

SEATTLE (Scrap Monster): The latest market data report published by the World Gold Council (WGC) indicates that record breaking gold prices led to reduced consumer demand in India during early-March this year.

According to the gold trade body, international gold prices had touched a record high in early-March 2024. A weak U.S. economic data, dip in U.S. dollar and treasury yields coupled with rising geopolitical risks triggered gold price surge. The domestic gold prices to hit all-time highs during this period.

The unprecedented surge in prices dented consumer demand for the yellow metal. The dip in demand is evident from the fact that domestic gold prices are reportedly trading at a discount of around $20 per ounce in comparison with international prices. The high gold prices are likely to dent wedding-season demand too, WGC report said.

ALSO READ: WGC China Reported Elevated Gold Premiums in February 2024

The Reserve Bank of India (RBI) added 4.7 tonnes of gold to its reserves during February 2024, taking the central bank’s total gold reserves to an all-time high of 817 tonnes. The monthly inflows into ETFs, which totalled $93.3 million in February, were the highest in almost 6 months. The gold imports into the country too witnessed significant surge during the previous month.

Looking ahead, gold jewellery demand is expected to remain subdued over the coming months, WGC noted.

• How Basic Mechanical Recycling can Capture Value from Mixed Plastic Waste
• Smurfit Westrock’s Paper Pallet Wrap Set to Drive Down Supply Chain Emissions
• Project Seeks to Improve the State of Solid Waste Management and Recycling in Arkansas
• January 9, 2025: Scrap Gold and Platinum Prices Moved Up, Silver Down on the Index