India's Gold Market Sees Recovery Amid Stronger Demand
India's gold market has started to recover from its sharp correction in June, according to an update by the World Gold Council. In August, international and domestic gold prices regained ground, partially reversing the earlier decline.
Jewellery demand picked up, as consumers took advantage of lower and more stable prices, while retailers and manufacturers replenished inventories ahead of the festive season. Investment demand remained steady, with gold ETFs continuing to attract inflows, albeit at a slower pace than in June.
Gold imports rebounded in July, signaling improved demand conditions, and domestic gold prices rose nearly 7% to INR151,744/10g, although they remain below import parity due to local supply availability. The exchange of old gold for new jewellery has increased market supply, keeping prices at a discount to the landed cost.
The World Gold Council expects demand conditions to continue improving, leading to a stronger festive season despite elevated prices potentially influencing jewellery purchases.