SEATTLE (Scrap Monster): The India gold market report published by the World Gold Council (WGC) noted that retail demand for the yellow metal remained sluggish during December last year. The muted demand pushed the local gold market discounts to their highest level since March 2022.
According to the report, the local market discount averaged at $8 per ounce throughout the year. The domestic gold prices surged higher by 3.8% during the month, registering a gain of 14% in the whole year 2022.
The rise in domestic gold prices led to investors booking profits in their gold investments. Consequently, Indian gold-backed exchange traded funds (ETFs) recorded marginal net outflows of 0.6t during the last month of the previous year. However, the ETFs recorded marginal inflow of 0.4t during the entire year.
The Reserve Bank of India (RBI) added 1.1t of gold to its reserves during the month, thus increasing its total gold holdings to 787.4t. The gold purchases by the country’s central bank totaled 33.3t during the entire year 2022.
Commenting on the outlook, WGC noted that retail gold demand is expected to pick up with the inception of wedding season in mid-January. The official gold imports are likely to remain muted until the Union Budget, which is due to be presented on 1st February.