SEATTLE (Scrap Monster): The latest market report published by the World Gold Council (WGC) says that retail demand for gold in India witnessed improvement during the month of April this year. However, official gold imports by the country continued to remain muted during the month.
According to Mukesh Kumar, Senior Analyst, India World Gold Council, the improvement in retail demand for the yellow metal was mainly attributed to brief correction in gold prices during the final week of the month, wedding purchases and a notable pickup in demand ahead of Akshaya Tritiya.
The official gold imports recorded significant decline by 75% over the previous year to total 27.1 tonnes in April 2021. The Reserve Bank of India (RBI) added 0.9 tonnes of gold to its holdings during the month, thus boosting its total gold reserves to 761.3 tonnes. Meantime, the Indian gold ETFs witnessed net inflow of 2.1 tonnes in April this year, primarily driven by rising gold price and safe-haven demand.
Looking ahead, WGC expects retail demand to remain healthy in May due to the ongoing wedding season and lower gold prices. The official gold imports too may stay strong due to lower gold price and restocking by the trade during the wedding season.