BUSINESS

Gold demand in India up by 10% in Q3

By Rishabh Raj

1

India's gold surge

In Q3 FY24, India's gold demand surged 10% to 210.2 tonnes, up from 191.7 tonnes in Q3 FY23, defying a 6% global decline. While China saw only a marginal rise from 242.7 tonnes to 247 tonnes.

2

Reason for demand decline

Elevated gold prices and economic uncertainty caused a 1% dip in global jewelry demand and a 14% fall in bar and coin demand.

3

ETFs remained weak

Investment demand for gold ETFs was weak in Q3 FY24, reaching only half of its five-year quarterly average of 315 tonnes at just 157 tonnes.

4

Gold demand in technology

Gold demand for use in technology also decreased by 3% to 75.3 tonnes from 77.3 tonnes due to sluggish demand in the electronics sector.

5

Record mine production

Overall gold supply rose by 6% to 1,267.1 tonnes in Q3 from 1,190.6 tonnes a year earlier, with mine production reaching a record 971 tonnes.

6

Dhanteras price impact

WGC India Regional CEO Somasundaram PR stated that gold prices will play a crucial role during the Dhanteras festival and wedding season in the upcoming two months.

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