Gold Demand in India to Surge During the Peak Festive Period

SEATTLE (Scrap Monster): The latest edition of India Gold Market Update Report published by the World Gold Council (WGC) predicts surge in demand for the yellow metal during the peak festive season. The market has reported an encouraging start to seasonal demand, it said.

Gold prices saw a sharp upswing in late August. The rally sustained with further acceleration through the first half of September to hit fresh all-time highs. Year-to-date, gold prices have recorded a surge of 40%. The price movement of gold in the country closely mirrored international movements.

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The physical investment demand for bars and coins surged. The investment interest has reportedly outpaced jewellery purchases in the country. However, with the advent of wedding season, gold jewellery purchases are seen showing signs of a pickup. The higher gold prices are likely to boost the trade of old jewellery.

The Indian gold ETFs recorded notable surge in inflows in August. It was the fourth consecutive month of ETF inflows. The total assets under management (AUM) in gold ETFs in India reached record highs of $8.3 billion. No gold purchases were reported by the Reserve Bank of India (RBI) during the month. Meanwhile, the country’s gold imports surged to hit a nine-month high, during the month.