India Imports Nearly Double Gold Despite Global Slump.
The World Gold Council (WGC) released its Q3 report on Wednesday (today) which revealed a major increase in global gold demand. In the third quarter of 2024, the gold demand rose by 5% to 1,313 tonnes valued at over $100 billion in India.
The report further said that the surge was driven by Exchange-Traded Funds (ETFs, investment funds traded on stock exchanges tracking gold prices ) and Over-the-Counter (OTC, made directly between buyers and sellers, outside of exchanges) investments along with strong industrial demand and central banks’ purchases. Hence, the value of demand jumped 35% to exceed US$100bn for the first time, as per the report.
According to WGC, India stood out as a notable exception to the global decline in jewellery demand. The country’s gold demand jumped 18% to 248.3 tonnes which is valued at Rs 1,65,380 crores (approximately $2.2 billion).
This growth has been made on account of jewellery demand increasing by 10% to 171.6 tonnes and investment demand rising by 41% to 76.7 tonnes.
The WGC report highlights that ETFs and OTC investments drove demand with ETF holdings increasing by 95 tonnes in the Q3. Also, Central banks’ purchases contributed majorly to the demand surge. However, jewellery demand has declined globally except in India. Additionally, recycling gold increased by 22% to 23.4 tonnes.
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As per the report, India’s gold import nearly doubled to 360.2 tonnes which is also driven by the government’s decision to reduce import duty and consumer spending on gold jewellery rises 13% year-over-year to $36 billion.
Lower local gold prices also contributed to this increase that the Reserve Bank of India (RBI) continued to add to its gold reserves purchasing 13 tonnes which further brings its total holdings to 854 tonnes, as per the WGC report.
Today, the price of gold reached an all-time high. According to the latest updates, the 22-carat gold rate has increased by Rs 65 per gram to Rs 7,440 and by Rs 520 to Rs 59, 520 per sovereign (8-gram). 18-carat gold has increased by Rs 55 to Rs 6,130 per gram, while silver bullion costs Rs 106, up by Rs 1.
The surge in gold prices is attributed to the global market where gold rates have increased by $25. The upcoming US presidential election is also expected to push prices higher and the predictions suggest gold prices may breach the $2800 mark by November 5, 2024.
Also, read| Gold Hits Record High: Prices Soar To Rs 7,440 Per Gram
