India Sees Boost in Gold Demand as Prices Fall

Lower gold prices in India have sparked increased demand ahead of the festive season. According to the World Gold Council, consumers are responding to more stable and lower prices.

In June, gold prices corrected after a period of stability in July, but recovered in August, prompting retailers and manufacturers to replenish their inventories.

As a result, industry feedback indicates that deferred purchases have returned to the market, resulting in higher footfall and recovery in demand beyond essential wedding-related purchases.

The World Gold Council's India Gold Market Update reported that jewellery demand has strengthened, with consumers viewing recent price action as a buying opportunity.