India Reported Robust Festive Gold Buying, Despite Record Prices

SEATTLE (Scrap Monster): Despite the commodity's prices hitting new highs, gold buying in India remained robust. Demand for the yellow metal surged during the holiday season on expectations that bullion would keep climbing in the midst of sagging stock markets and escalating geopolitical tensions.

India's strong local demand for gold is anticipated to help sustain global prices, which last week set a new high. It is also anticipated that the increase in gold imports will result in a wider trade deficit, which will put pressure on the local currency.

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Indians celebrated Dhanteras, the auspicious day for purchasing gold, yesterday. It ended up being one of the busiest days in the nation for gold purchases. The increased purchases are based on the expectation that gold prices will continue to rise. As part of their diversification efforts, investors are reportedly adding gold to their portfolios, particularly in light of the fact that the nation's stock market has dropped by almost 7% from its peak highs at the end of September this year.

The head of the India Bullion and Jewellers Association (IBJA), Prithviraj Kothari, stated that because of the extremely high price of gold, the value-based turnover for Dhanteras 2024 is anticipated to be much larger than it was the previous year. He did, however, add that the turnover is expected to stay somewhat lower or roughly at the same level as the year before in terms of volume.