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Demand for gold in India in the July-September quarter dipped by 16% year-on-year (yoy) to 209.4 tonnes, while the rally in gold prices pushed up value by 23%, according to the World Gold Council (WGC).The quarter witnessed a 31% drop in jewellery demand but investment demand went up by 20% as consumers bought coins and bars to create an asset for them, as per WGC figures released on Thursday."Investment demand has shot up to 91.6 tonnes and by 74% in value to Rs 88,970 crore. This highlights a strategic commitment among Indian consumers to gold as a long-term store of value with consumers adapting to the new price levels," said Sachin Jain, regional CEO India at WGC.While investment demand witnessed a 20% growth, jewellery demand saw a 31% volume decrease to 117.7 tonnes as people preferred light weight and lower karate jewellery. The sales in September were also affected by the Shradh period, which is considered as an inauspicious time to buy anything precious among the Hindus. Live EventsOn the supply side, gold imports were 194.6 tonnes, down 37% yoy, while recycling saw a modest 7% yoy decline to 21.8 tonnes, suggesting consumers are holding onto their prized asset. "This drop has been noticed in the old gold sales for hard cash. But, exchanging old gold for new gold jewellery has remained strong with most of the leading jewellers indicating that 40% of their sales came from old gold exchanges this year," Jain added.The current festive and wedding seasons are pivotal for the yellow metal. Despite prevailing high prices, consumer sentiment remains positive and retailers are prepared. WGC expects robust demand across all categories during the upcoming months led by the wedding season. "With total gold demand from January to September at approximately 462.4 tonnes, we anticipate full-year demand between 600 and 700 tonnes, more towards the higher end of range," Jain said.Globally gold demand grew 3% yoy to 1,313 tonnes, the highest quarterly total, according to WGC. Toeing the Indian investors' sentiment, global investors remained firmly in the driving seat in the quarter under review. Huge ETF buying of 222 tonnes, accompanied by a fourth successive quarter of bar and coin demand above 300 tonnes, fuelled the rise in overall demand.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our Economic Times WhatsApp channel) Read More News onGoldGold priceGold prices newsGold prices todayGold price delhigold demand in Indiagold pricesjewelry demandgold importsinvestment demand (Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless (You can now subscribe to our Economic Times WhatsApp channel)Read More News onGoldGold priceGold prices newsGold prices todayGold price delhigold demand in Indiagold pricesjewelry demandgold importsinvestment demand(Catch all the Business News, Breaking News and Latest News Updates on The Economic Times.) Subscribe to The Economic Times Prime and read the ET ePaper online....moreless
