look news india
Mumbai: India's gold demand has seen an annual increase of 18 percent in the September quarter of the current financial year. According to the report of the World Gold Council, due to reduction in duty on gold in the budget of the current financial year, the demand for gold in the September quarter stood at 248.30 tonnes, which was 210.20 tonnes in the September quarter last year. Year.
However, investors can wait for the prices to fall considering the current high prices of gold.
Gold demand is expected to be between 700 and 750 tonnes in 2024, which will be the lowest since 2020. India's gold demand in 2023 was around 760 tonnes. The demand for gold is expected to improve during Dhanteras and Lagnasara season.
In terms of value, the demand for gold increased by 53 percent to Rs 1,65,380 crore in the September quarter, which was seen at Rs 1,07,700 crore in the September quarter last year. Demand for jewelery increased by 10 per cent to 171.60 tonnes in the September quarter.
Council sources said that apart from reduction in duty, demand for gold has been high in the September quarter due to good monsoon of the current year. In the budget, import duty on gold was reduced from 15 percent to 6 percent.
India's gold demand is likely to fall to a four-year low in the current calendar year as a result of persistently high prices.
Gold demand in July-September was driven by lower prices after the government announced a significant cut in import duty on gold while presenting the Budget for the current financial year. However, sources said that with the increase in the price of gold at the global level, the purchase of gold is also decreasing at the domestic level.
Gold prices have increased by 25 percent in 2024 compared to 10 percent in 2023. People who want to invest in gold are now preferring to invest through gold ETFs instead of investing directly in gold. At the end of September, the AUM of India's gold ETFs stood at Rs 39,824 crore, indicating that indirect investment in gold by investors in the country is increasing.
Global gold demand crosses $100 billion for the first time
In the third quarter of 2024, global demand for gold increased by five percent on an annual basis to 1313 tonnes. Total demand in value terms has crossed the $100 billion mark for the first time.
The investment demand for gold from western investors is very high. Investment has increased especially through gold ETFs.
September saw net inflows into gold ETFs globally for the fifth consecutive month due to interest rate cuts in the US and rising geopolitical tensions in the Middle East.
Assets under management (AUM) of gold ETFs also increased by five per cent to $271 billion and the combined figure of gold holdings reached 3,200 tonnes at the end of September, World Gold Council sources said.