India’s gold demand rose 8% in FY24 Q4 despite high prices

Gold demand in India rose by 8% year-on-year in the January to March quarter this calendar year despite high prices. This gold demand increase, which was at 20% in value terms, was thanks to volume growth and high levels of purchasing by the Reserve Bank of India, according to the World Gold Council.

“India’s continued strong macroeconomic environment was supportive for gold jewellery consumption even though prices reached a historic high in March leading to a slowdown in sales as the quarter ended,” said the World Gold Council’s regional CEO for India Sachin Jain, the Press Trust of India reported.
 
The Reserve Bank of India has increased its gold purchasing, and this has also contributed to the rise in gold demand in India, ET Bureau reported. In the full 2023 calendar year, the Reserve Bank of India bought 16 tonnes of gold, but it has already purchased a total of 19 tonnes of gold in the first quarter of the 2024 calendar year and is expected to continue to purchase gold throughout the remainder of the calendar year.
 
“Historically, eastern markets of the world including India and China respond when the prices are going down and there is a fluctuation, whereas western markets respond when the prices are going up,” said Jain. “For the first time we have seen a complete reversal where Indian and Chinese markets have responded to an increase in prices of gold.”