WGC Dismissed Chances of Festive Season Gold Demand Surge

SEATTLE (Scrap Monster): The World Gold Council (WGC) ruled out possibilities of a strong spike in festive gold demand in India this year, similar to that witnessed during the previous year. It must be noted that local gold market in the country still continues to be at discount, thus indicating weak demand trends.

According to PR Somasundaram, Regional CEO, WGC-India, the December quarter in 2021 recorded highest quarterly gold sales in the country in nearly 25 years, boosted by robust demand scenario during the festive season. The gold sales had totalled 344 tonnes during the quarter, which was mainly driven by pensive demand. WGC doesn’t expect a similar situation this year, he added.

WGC expects jewellery to account for almost 80% of the total gold buying during the upcoming festival season. The organized market players will benefit from coin sales in the country. The investments in digital gold and gold-backed ETFs, especially in urban areas, will witness a surge during this period, but they account for only a small proportion of the overall gold portfolio.

The gold trade body expects good gold demand in the country in the near term. It expects strong upward movement in gold prices over the next two to three quarters.

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