Indian Gold Market Sees Recovery Amid Stronger Demand
After facing significant challenges in recent months, the Indian gold market is showing signs of recovery. Gold imports rose in July, with an estimated 40-45 tonnes imported, compared to just 20 tonnes in June.
The World Gold Council attributes the price stabilization and subsequent recovery to shifting monetary policy expectations, a weaker US dollar, and renewed inflows into gold ETFs.
Despite the price correction earlier this year, which saw gold selling at a discount of up to $100 per ounce, the current discount is significantly lower at around $45. This indicates ample supply in the market.
Jewelry demand has also improved, with industry feedback suggesting that deferred purchases have returned to the market, resulting in higher footfall and a recovery in demand beyond essential wedding-related purchases.