Softer prices and festive demand helped India’s gold demand increase by 10% in the third quarter of 2023 to 210 tonnes from 191.7 tonnes in Q3 2022. In value terms, the demand increased by 28% to ₹188,400 crore from ₹147,220 crore during Q3 2022.

Total jewellery demand in India for Q3 2023 increased by 7% at 155.7 tonnes as compared to Q3 2022 (146.2 tonnes). In terms of value, jewellery demand was ₹139,550 crore, up by 24% from Q3 2022 (₹112,330 crore), says data from the World Gold Council (WGC), which tracks the sale of gold globally at the wholesale level.

''Purchase of gold jewellery in India was up 7% y-o-y aided by softer gold prices and festive demand, more pronounced in South India'', says Somasundaram PR, Regional CEO, India, World Gold Council.

Total investment demand (bars and coins) for Q3 2023 at 54.5 tonnes increased by 20% in comparison to Q3 2022 (45.4 tonnes). In value terms, gold investment demand in Q3 2023 was ₹48,850 crore, up by 40% from Q3 2022 (₹34,900 crore). ''Price correction was a major factor that triggered the latent demand'', says Somasundaram. It will continue to be strong, underpinned by strong positive economic sentiment mixed with uncertainties arising from a variety of factors such as fear of inflation, below-normal monsoon and global developments, he says.

Gold recycling in India recorded 19.3 tonnes, a 20% growth over last year, which is more due to the low base of last year and perhaps some profit taking.  

WGC says Q4 will get the usual seasonal boost due to festivals and wedding purchases, however, any sharp price rise could delay the release of pent-up demand following a relatively weak H1. 

With the first nine months' demand at 481.2 tonnes, WGC's estimate for full-year gold demand is in the range of 700-750 tonnes, marginally lower than last year's demand of 774 tonnes.

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