WGC: RBI Gold Purchases Hit Highest Level in Two Years

SEATTLE (Scrap Monster): The World Gold Council (WGC) released its latest report on India gold market. The robust investment demand and central bank buying during the month of June this year have softened the slump in jewellery purchasing, amidst surging prices for the yellow metal, the report said.

According to Kavita Chacko, Research Head, India World Gold Council, the jewellery demand remained subdued during the previous month, mainly due to seasonal factors and sky-high prices for the metal. At the same time, there has been a persistent demand for gold bars and coins, suggesting a likely shift from jewellery to bar and coins.

ALSO READ:

WGC: Gold ETFs Posted Worst H1 Dip in 11 Years

World Gold Council Published Gold Mid-Year Outlook 2024

The jewellery demand is likely to witness a potential revival in the latter part of Q3 this year, with the onset of the festival season. Also, it anticipated sustained interest in bars and coins, WGC report said.

The Reserve Bank of India (RBI) gold reserves recorded growth in June 2024, with monthly gold purchases hitting the highest level in two years. The central bank acquired 9.3 tonnes of gold during the month. The RBI gold purchases totalled 37.1 tonnes in H1 2024- the highest level since 2013.

The inflows into the Indian gold ETFs maintained momentum during the month. The ETFs recorded net inflows totalling INR 7.3 billion. As at end 30, June, 2024, the total AUM of Indian gold ETFs stood at approximately $4 billion, WGC noted.