Indian Gold Market Sees Recovery Ahead of Festive Season

India's gold market is showing signs of recovery ahead of the festive season. According to the World Gold Council, stronger jewellery buying, higher imports, and continued investment flows are pointing to improving demand.

Gold prices have regained momentum after correcting in June and remaining broadly stable in July. International gold prices increased 9 per cent in the first two weeks of August to USD 4,391 per ounce, while domestic prices rose nearly 7 per cent to Rs 151,744 for 10 grams as of 14 August.

Physical demand has started to improve alongside the recovery in gold prices. Jewellery purchases are showing signs of strengthening, with consumers using recent price movements as an opportunity to buy. Purchases that had been deferred earlier have also begun returning to the market.

The improvement is also visible in the supply chain, with manufacturers reporting higher order flows. Jewellers have increased inventory ahead of the festive season, indicating expectations of stronger consumer demand in the coming weeks.