India's Gold Market Shows Signs of Recovery Amid Price Rebound
India's gold market is showing signs of recovery in August as prices rebound and jewellery demand improves, according to the World Gold Council. The sharp price correction in June led to weaker demand, but prices have stabilised in July and moved higher in early August.
The LBMA Gold PM price rose 9% during the first two weeks of August to $4,391 per ounce, while domestic gold prices increased nearly 7% to ?151,744 per 10 grams. The appreciation of the Indian rupee against the US dollar partly limited the increase in domestic prices.
Jewellery demand has strengthened as consumers respond to the improved price environment, with retailers and manufacturers replenishing inventories ahead of the upcoming festive season. This is a positive indicator for trade activity, but the market will be closely watched for sustained consumer demand.