WGC: India’s Gold Market Awaits a Festive Boost

SEATTLE (Scrap Monster): The World Gold Council (WGC) released its latest update on the India gold market.

According to Kavitha Chacko, Research Head, India World Gold Council, the gold demand surge driven by import duty cut was tempered by fresh record-high prices of the commodity. The gold prices have continued to stay elevated after touching record highs, supported by ongoing geopolitical tensions and a decline in the U.S. dollar. It should be mentioned that the present domestic gold prices in India are marginally lower than the landed cost.

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According to reports, the market is beginning to show early indications of a comeback in gold purchases, spurred by continuing festivals and strong wedding purchases. According to the WGC report, this year's favorable monsoons and increased crop sowing are expected to increase rural income and drive up demand for gold.

WGC observed that high geopolitical concerns and robust gold price momentum were the primary drivers of investor interest in Indian gold ETFs. The Association of Mutual Funds in India (AMFI) said that in September of this year, net inflows into gold exchange-traded funds (ETFs) totaled over US$147 million.

The Reserve Bank of India (RBI) has increased its gold holdings by 54.7 tonnes so far this year, which is the most it has done in three years. Additionally, a decline in gold imports was noted in September 2024.