WGC: Gold Retail Demand Witnessed Huge Boost in India

SEATTLE (Scrap Monster): The India Gold Market Report published by the World Gold Council (WGC) indicates that retail gold demand in the country remained strong during the month of October this year. The boost in demand was mainly driven by the weddings and festive season.

According to Mukesh Kumar, Senior Analyst, India World Gold Council, the coincidence of pullback in gold prices and the onset of festivals and wedding season led to notable surge in retail gold demand. The demand peaked towards the end of October, aided by fresh demand sparked by festivals of Dhanteras and Dussehra. Consequently, the local gold market remained in premium for most of the month. The recent correction in customs tariff led to pickup in wholesale demand for bullion.

The India gold ETFs witnessed net inflow of 0.7t in October, registering second straight month of inflow. Meantime, the Reserve Bank of India (RBI) added only 1t of gold, thus lifting its total gold reserves to 786.3t.

Looking ahead, WGC anticipates healthy retail gold demand in the upcoming months, aided by the ongoing wedding season. The overall retail demand is expected to remain well above pre-pandemic levels in the fourth quarter of 2022, but may not match the strong levels during the same quarter a year before.

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