Gold demand in India rose by 10% in July-September quarter in volume terms to 183.2 tonnes as compared with the same period last year, on account of a significant drop in prices that led to bargain purchase, according to a report by the World Gold Council (WGC)Thursday. However, the seasonal increase in yellow metal demand is expected to be muted this Dhanteras-Diwali, due to factors such as rising prices and liquidity crunch.
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In the September quarter, gold demand increased by 14% to Rs 50,090 crore, compared to Rs 43,800 crore in the same quarter last year, in terms of value, according to the Q3 Gold Demand Trends’ report of WGC. “A dip in the gold price in the early part of the quarter to around Rs 29,000 per 10 grams (with taxes) – its lowest level since January 2018 – spurred demand,” WGC Managing Director, India, Somasundaram PR told PTI.
Prices of gold in India rose sharply to about Rs 32,000 to Rs 33,200 per 10 gram and demand also eased towards the later half of the quarter, on the back of depreciation of the rupee, which has fallen about 15% since January this year against the US dollar.
Amid surging demand around the festive season in the country, gold prices in India were up 0.11% to Rs 31,784 per 10 grams in futures trade on Thursday as speculators raised their bets amid a firm global trend. It may be noted the October-December period of every year in India is generally a vibrant time for gold-related buying as demand shoots up amid festive and wedding season.
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For the complete year, the gold demand in India is expected to be at the lower end of 700-800 tonnes range. In 2017, India’s gold demand was recorded at 771.2 tonnes. Meanwhile, the gold jewellery demand in value terms was up 14% at Rs Rs 40,690 crore in the September quarter from Rs 35,610 crore in the same quarter of 2017. In terms of volume, it rose 10% at 148.8 tonnes compared to 134.8 tonnes in the same period last year.
Meanwhile, on Thursday, Sensex and Nifty traded on a volatile note with heavy selling pressure observed in most IT, pharma and FMCG stocks. While Yes Bank shares gained nearly 8% in trade, Infosys shares traded lower by over 2% and L&T shares surged 6% on the BSE after stellar Q2 results. HDFC shares were trading lower nearly 1% ahead of its quarterly corporate earnings to be announced today.