Commodities
Gold Market Recovery Spurred by Festive Season Demand
India's gold market is showing signs of recovery ahead of the festive season, driven by improving jewellery demand and rising imports. The World Gold Council reports that physical demand has strengthened, with consumers buying up jewellery as recent price movements are seen as an opportunity to purchase.
The improvement in prices has also coincided with a rebound in gold imports, which more than doubled in July to USD 4.16 billion from USD 1.97 billion in June. Estimated import volumes increased to 40-45 tonnes from around 20 tonnes.
Investment demand remains supportive, with Indian gold ETFs recording net inflows of Rs 1,560 crore in July, although this was 55% lower month-on-month. Assets under management rose 2% to Rs 1,73,300 crore.