WGC says India Jul-Sep gold demand up 47% at 139 tn, jewellery up 58%

-WGC: India Jul-Sep gold demand at 139.1 tn, up 47% on year

-India Jul-Sep net bullion imports at 255.6 tn vs 89 tn a year ago

-India's gold dore imports in Jul-Sep at 55 tn vs 25.2 tn year ago

-India Jul-Sep gold demand for jewellery at 96.2 tn, up 58%

-India Jul-Sep gold recycling at 20.7 tn vs 41.5 tn year ago

-India's investment demand for gold in Jul-Sep at 42.9 tn, up 27%

India's gold demand surged 47% on year to 139.1 tn in Jul-Sep as a lower base of last year and easing of COVID-19 restrictions across the country boosted sentiment, the World Gold Council said in its Gold Demand Trends report today.

The growth in demand was on a very low base of Jul-Sep last year when the country was emerging out of one of the strictest nationwide lockdowns with minimal economic and social activity.

In terms of value, India's gold demand in the third quarter of 2021 was 37% higher on year at 593.3 bln rupees.

The country's demand for gold jewellery rose 58% on year to 96.2 tn in Jul-Sep. Investment demand for gold rose 27% on year to 42.9 tn.

Overall gold demand in Jan-Sep of 2021 increased 38% on year to around 360.2 tn.

"With the upcoming festive and wedding season, there is all the more enthusiasm towards gold demand, and we anticipate it to be the busiest gold-buying season, since the start of COVID," Somasundaram P.R., managing director-India at WGC, said in the report.

India's net bullion imports jumped to 255.6 tn in Jul-Sep, but from a very low base of 89.0 tn last year. India's gold dore imports rose to 55.0 tn in the third quarter from 25.2 tn in the same quarter of 2020.

Gold recycling declined to 20.7 tn in quarter ended September from 41.5 tn last year.

In the coming months, higher commodity and logistical costs are expected to keep inflation elevated, which is likely to support demand for gold.

"While we have not made any forecast for the rest of the year, barring any unexpected twist in tale, we could see a sharp spike in demand in Q4 2021," Somasundaram said in the report.

Source : Eureka

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