Shining Again: India’s Gold Demand Rebounds to Pre-Covid Levels – News Couple
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Shining Again: India’s Gold Demand Rebounds to Pre-Covid Levels


WGC reports that third-quarter demand reflects a combination of lower base impact and a return of positive trade and consumer sentiment.

The World Gold Council said on Thursday that gold is likely to see a sharp rise in demand in the fourth quarter (October-December) of 2021 supported by lower gold prices and the return of positive business sentiment.

The gold industry’s market development organization added that as restrictions are gradually lifted across the country, retail demand is bouncing back to pre-Covid levels.

“With the upcoming holiday and wedding season, there is more enthusiasm towards gold demand, and we expect it to be the busiest gold buying season, since the start of Covid. Rising inflation tends to drive gold demand. Gold is seen as a strong inflation hedge and supports decades Although we haven’t made any forecasts for the rest of the year, except for any unexpected twist in the tale, we could see a sharp rise in demand in the fourth quarter of 2021,” said Somasundaram PR, Regional CEO, India, World Gold Council. .

According to the report, India’s gold demand for the third quarter (July-September) 2021 was 139.1 tons, an increase of 47% compared to the total demand for the third quarter of 94.6 tons for 2020. Total net gold imports in the third quarter of 2021 amounted to 255.6 tons, an increase of 187% compared to 89 tons in the third quarter of 2020.

WGC reports that third-quarter demand reflects a combination of lower base impact and a return of positive trade and consumer sentiment.

“This is primarily driven by what appears to be a firm grip on the pandemic with higher vaccination rates and lower infection rates, leading to a robust recovery in economic activity. Lower gold prices have also increased consumer interest ahead of seasonal demand. Meetings of buyers and sellers and anecdotal comments from manufacturers suggest that this holiday season in the fourth quarter may be at its best in several years, with strong imports (255.6 tons, an 187% increase from last year) well ahead of demand in the third quarter,” Somasundaram said.

Total jewelery demand in India for the third quarter of 2021 increased by 58% to 96.2 tons compared to the third quarter of 2020 (60.8 tons) and the demand for jewelery was valued at Rs 41,030 crore, an increase of 48% from Rs 27,750 crore. In the third quarter of 2020.

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