India's Gold Market Shows Signs of Recovery with Rising Prices and Demand

The gold market in India is showing signs of recovery after a sharp price correction in June. In August, prices rebounded, and jewellery demand improved as retailers rebuilt their inventories ahead of the festive season. The World Gold Council (WGC) reported that international gold prices rose 9% during the first two weeks of August to $4,391 per ounce.

The appreciation of the Indian rupee against the US dollar partly limited the increase in domestic gold prices, which still increased by nearly 7% to ₹151,744 per 10 grams. The improved price environment supported jewellery purchases, with consumers responding to lower and more stable prices.

Retalers and manufacturers have begun replenishing inventories ahead of the upcoming festive season, indicating a recovery in trade activity. The WGC noted that market participants are adjusting to the changed price environment.