Gold demand surges by 8 per cent in India, RBI buys 19 tonnes in March quarter: World Gold Council Report
Along with India, the global demand for gold has also gone up. For March quarter, the demand witnessed a spike of 3 per cent to 1,238 tonnes making January-March 2024, the strongest quarter after 2016.
Despite the rising cost, the demand for gold is rising in India. According to a World Gold Council report titled ‘Gold Demand Trends Q1 2024’, India has registered a growth in gold demand in the quarter of March compared to the same period last year.
Between January and March 2023, the gold demand in India was 126.3 tonnes, and with an 8 per cent increase, it reached 136.6 tonnes for the same period this year. Based on valuation, the demand for gold has increased by 20 per cent to 75,470 crores. The demand for gold ornaments has also risen by 4 per cent from 91.9 per cent to 95.5 per cent. In terms of gold bars and coins, the demand has registered a 19 per cent Y-o-Y increase. Earlier in 2023, it was 34.4 tonnes which has increased to 51.1 tonnes.
Traditionally, gold is considered a safe investment in India. Whether it is in the form of jewellery or gold bonds or other forms of purchase, Indians feel safe to invest in gold. Interestingly, the current rise in demand comes at a time when the price of gold has skyrocketed to an all-time high. Recently, the gold price touched a high of Rs. 74,000 per 10-gram. Statistically proven, markets like China and India show rise in demand if the price of gold plunges or fluctuates. However, the recent increase in demand is contrary to this trend. This shows that investor sentiment towards gold has been positive.
Moreover, this demand was further fueled by the Reserve Bank of India’s gold purchase. In the first three months of 2024, the RBI purchased a total of 19 tonnes of gold, which is 3 tonnes higher than its purchase for the same period last year. Apart from the RBI, the large fund houses had also resorted to gold investment as the most trusted option.
