Indian Gold Demand Rebound Ahead of Festive Season
Gold demand in India has improved ahead of the festive season as prices ease and buyers return to the market. The World Gold Council's latest report notes that jewellery demand has strengthened, with customers taking advantage of lower gold prices to purchase new items. Jewellery makers are also receiving more orders, while retailers are increasing their stock levels in anticipation of strong sales during Dhanteras and Diwali.
The London Bullion Market Association (LBMA) Gold Price PM climbed 9% in the first two weeks of August to $4,391 an ounce, while domestic prices gained nearly 7% to Rs 1,51,744 per 10 grams. The rupee's appreciation against the dollar cushioned some of the international rally, limiting the rise in domestic prices.
Gold Exchange-Traded Funds (ETFs) continued to attract investors in July, with net inflows of Rs 1,558.75 crore, down 55% from June. Holdings rose by a tonne to 120 tonnes, while total assets under management climbed 2% month-on-month to Rs 1,73,300 crore.