India's gold demand rises 8% in January-March to 136.6 tonnes despite high rate

India's gold demand surged by 8% annually to 136.6 tonnes in the March quarter, driven by a robust economic environment despite historically high prices, as the World Gold Council reported. The aggressive gold buying by the Reserve Bank of India contributed to this rise. In value terms, India's gold demand soared by 20% year-on-year to US$ 9.05 billion (Rs. 75,470 crore) during January-March, supported by both volume growth and an 11% increase in quarterly average prices.

The WGC's 'Gold Demand Trends Q1 2024' report revealed a total gold demand, including jewellery and investment, rising from 126.3 tonnes to 136.6 tonnes year-on-year. Of this, jewellery consumption increased by 4% to 95.5 tonnes, while investment demand surged by 19% to 41.1 tonnes. Regional CEO of WGC India, Mr. Sachin Jain, noted that despite March's historic price highs leading to a sales slowdown, India's robust macroeconomic climate supported gold jewellery consumption. He anticipates India's gold demand for the year to range between 700-800 tonnes, potentially trending towards the lower end if the price rally persists.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.