India to see rise in demand for gold in 2024 : World Gold Council

Being the traditional yellow metal hub, India is expected to see an increase in demand for gold, the World Gold Council (WGC) said on Wednesday. Sale and purchase of gold in India will remain on the higher side even as the yellow metal will witness a subdued first quarter of 2024, the World Gold Council added. 

Lower jewellery sales in the first quarter of FY25 will see purchasing trends shape up during this period, the World Gold Council stated. It said the annual demand for gold is anticipated to rise as consumers adjust to higher prices.  

India's gold demand has been stuck between 700 and 800 metric tons in the past five years, but it is expected to break out of this range and rise to between 800 and 900 tons in 2024, Somasundaram PR, CEO of WGC's Indian operations said.

"In view of the fact that prices on the higher side have now been absorbed and economic growth is robust, demand for gold is resetting its base to 800 to 900 tons," WGC's Indian operations chief added.

Gold demand in India fell 3 per cent in 2023 from the prior year to 747.5 tons, the lowest since 2020, as prices rallying to a record high curtailed jewellery demand, the WGC said in a report published on Wednesday. Switzerland, the United Arab Emirates, Peru, and Ghana are leading gold suppliers to India.

In the March quarter, demand is expected to stay low due to fewer auspicious wedding days, the WGC said. Weddings are a major driver of gold purchases in India, with bullion in th ..

(With Reuters inputs)