Gold Demand Soars Ahead of Festive Season Amid Price Recovery
Gold demand is showing signs of improvement as prices ease and festive buying approaches. The World Gold Council reported that jewellery buyers are returning to stores, increasing showroom visits, and exchanging old gold for new pieces. This trend is driven by a combination of factors, including the recent fall in gold prices, shifting expectations around US monetary policy, and fresh inflows into gold ETFs.
The report noted that domestic prices are still running below import parity, suggesting that local supply remains comfortable. However, jewellers are melting down old gold to make new pieces, which is contributing to a narrowing discount to landed cost.
The World Gold Council's India Gold Market Update highlights the importance of festive season sales for the industry. Bullion dealers are stocking up in hopes of strong sales during Dhanteras and Diwali, indicating increased confidence in the market.