CHENNAI: Gold jewellery demand in India in the third quarter (July-September) of 2022 went up by 17% at 146.2 tonne as compared to 125.1 tonne registered in the year-ago period.
The overall gold demand was up 14% in Q3 at 191.7 tonne, when compared with 168 tonne achieved in 2021. But total recycled gold in India was down 23% in Q3 at 16 tonne, as against 20.7 tonne in 2021.
In value terms, the gold demand in Q3 this year went up by 19% at Rs 85,010 crore, as against Rs 71,630 crore in the comparable period last year. Total gold jewellery sold registered a 22% increase at Rs 64,860 crore in the July – September period of this year, as against Rs 53,330 crore in Q3 of 2021, a statement from World Gold Council said.
“India’s total gold demand in Q3 reflects better than expected performance and strong consumer interest, helping year-to-date demand return to pre-Covid levels. Credit expansion added impetus to the demand, with bank loan growth touching a nine-year high by the end of quarter,” Somasundaram PR, regional CEO, India, World Gold Council said.
According to him, recovery in gold jewellery demand was primarily driven by urban India, more specifically southern parts, underpinned by robust economic activities with a 17% Y-o-Y increase in tonnage terms. “Rural demand however was impacted by seasonal effect (monsoons) and inflation. On the other hand, Indian bar and coin demand also saw a 6% Y-o-Y improvement to 45.4 tonne as retail investors responded to gold price drop and weaker equity markets and festivities around Ganpati and Puja festivals after two years of Covid, saw a huge uplift in consumer sentiment,” Somasundaram said.
Going forward, Somasundaram feels, Indian retail investment is likely to continue to benefit from safe haven demand amid rising interest rates and a weakening rupee. There is optimism in overall outlook for the rest of the year with weddings and Diwali demand in Q4, but it is unlikely to match last year’s record breaking Q4. “Our gold demand estimate for full year is around 750-800 tonne, similar to last year,” Somasundaram said.





Source link

Leave a Reply

Your email address will not be published. Required fields are marked *