India’s gold demand grows 8% in Q1 to 136.6 tonnes, despite high rates

Jewellery demand rose 4%, while investment demand for gold bars, coins, and ETFs grew 19%. The WGC forecasts India's total gold demand for 2024 to fall within a range of 700-800 tonnes.

India’s gold demand grows 8% in Q1 to 136.6 tonnes, despite high rates

India's gold demand rose 8% annually to 136.6 tonnes in the March quarter assisted by a strong economic environment despite surged prices, according to the World Gold Council. The aggressive gold buying by the Reserve Bank of India (RBI) also contributed to the rise in demand.

India's gold demand in value terms rose 20% on an annual basis to ?75,470 crore during the January-March period of this year on volume growth as well as a rise in quarterly average prices by 11%. On Tuesday, the World Gold Council (WGC) released its global report 'Gold Demand Trends Q1 2024', showing that India's total gold demand, including both jewelry and investment, increased to 136.6 tonnes in January-March this year from 126.3 tonnes in the year-ago period.

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Of the total gold demand, the jewelry demand in India increased by 4% to 95.5 tonnes from 91.9 tonnes. The total investment demand (in the form of bar, and coin among others) grew 19% to 41.1 tonne from 34.4 tonne. Sachin Jain, Regional CEO, India, WGC, said the rise in gold demand reaffirms Indians' enduring relationship with gold.

As per the WGC data, India's gold demand in value terms rose 20% to Rs75,470 crore from Rs63,090 crore. Out of this, the jewelry demand grew 15% to Rs 52,750 crore from Rs45,890 crore, while gold investment demand went up 32% to Rs22,720 crore from Rs17,200 crore.

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The WGC also mentioned that the total gold recycled in India stood at 38.3 tonnes in January-March, up 10% from 34.8 tonnes in Q1 2023. "Total gold imports in India in Q1 2024 was 179.4 tonne, up by 25% compared to 143.4 tonne in Q1 2023," the Council said.

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