India's Gold Market Sees Resurgence Ahead of Festive Season
India's gold market is experiencing a resurgence in demand ahead of the festive season. Physical demand has improved, driven by consumers taking advantage of recent price movements to make purchases they had previously put off.
Jewellery sales have picked up, and manufacturers are reporting stronger order flows while jewelers are replenishing inventory.
Gold imports also rebounded sharply in July, increasing more than twice from June's $1.97 billion to $4.16 billion, with estimated volumes rising to 40-45 tonnes from around 20 tonnes.
Investment demand remains supportive, although it has moderated from the elevated levels seen earlier this year. Indian gold ETFs attracted net inflows of Rs 1,560 crore in July, down 55% from the previous month, but still saw a 2% increase in assets under management to Rs 173,300 crore.