India Gold Demand Gains Momentum Ahead of Festive and Wedding Season

SEATTLE (Scrap Monster): India’s gold market is showing early signs of revival, with jewellery purchases strengthening and investment demand remaining resilient ahead of the upcoming festive and wedding seasons, according to the World Gold Council (WGC).

Domestic gold prices in India declined 4.8% in September to INR 147,613 per 10 grams, following an 8.5% fall in international prices. Prices remained largely rangebound in October, while domestic discounts narrowed to US$8 per ounce by October 16, significantly lower than the September average of US$66.

Jewellers are reporting stronger orders as retailers replenish inventories ahead of the festive and wedding season. Lightweight designs, promotional campaigns and old-gold exchange schemes are witnessing huge buying interest. Incidentally, major listed jewellery companies recorded year-on-year revenue growth of 20–30% during July–September.

The net inflows into gold exchange-traded funds (ETFs) reached INR 44.5 billion in September, the highest in seven months. Inflows continued into October, despite a temporary suspension of fresh subscriptions to gold mutual fund schemes investing in ETFs.

Digital gold purchases climbed to 1.7 tonnes in September, up 5% month-on-month and 83% year-on-year in value terms. Meanwhile, gold imports fell sharply, while futures trading eased from August levels.

The WGC expects festive purchases and wedding-related demand to support the market in the coming months. However, historically high gold prices could restrain physical buying volumes, it noted.