Gold Demand Soars as Prices Fall Ahead of Festive Season

The World Gold Council (WGC) has reported an improvement in gold demand conditions in India due to lower and more stable prices. This trend is expected to continue, boosting festive season sales.

Jewellery demand has strengthened as consumers viewed the recent price correction as a buying opportunity. Retailers and manufacturers have begun replenishing inventories ahead of the festive season, with higher order flows being reported by manufacturers.

The old gold exchange remains active, facilitating purchases and attracting investors seeking strategic exposure to gold. Physical investment demand, while moderating from earlier highs, remained supportive during the price correction period.

Gold imports rebounded in July after two consecutive months of weakness, with an import value of $4.16 billion, more than double June's $1.97 billion, and estimated import volumes of 40-45 tonnes, up from 20 tonnes in June.