Gold Demand Rises Ahead of India's Festive Season
The Indian gold market is showing signs of recovery ahead of the festive season, according to the World Gold Council's latest India Gold Market Update. Jewellery demand has strengthened as consumers viewed recent price movements as an opportunity to buy, while deferred purchases returned to the market.
International gold prices rose 9% in the first two weeks of August to USD 4,391 per ounce, while domestic prices gained nearly 7% to Rs 1,51,744 per 10 grams. The recovery was supported by shifting monetary policy expectations, a weaker US dollar and renewed inflows into gold exchange-traded funds (ETFs).
Investment demand remained supportive despite moderating from elevated levels seen earlier in the year. Indian gold ETFs recorded net inflows of Rs 1,560 crore in July, although this was 55% lower month-on-month.