India’s gold demand bouncing back to pre-COVID levels; Sept ’21 demand rises 47% to 139 tonnes: WGC

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A gold jewellery shop in Mumbai's Jhaveri Bazaar. Photo/IAC

India’s gold demand has seen a 47 per cent year-on-year jump in the July-September quarter to 139.1 tonnes, following strong rebound in economic activity and recovering consumer demand, the World Gold Council said in a report. According to the World Gold Council (WGC), gold demand in India is bouncing back to pre-COVID levels and going forward the outlook looks bullish.

The country’s overall demand stood at 94.6 tonnes during the September quarter of 2020, the WGC’s Q3 Gold Demand Trends 2021 report said, adding that in terms of value, India’s third quarter gold demand went up by 37 per cent to Rs 59,330 crore, compared to Rs 43,160 crore a year ago.

“This reflects a combination of low base effect and return of positive trade and consumer sentiments. This is primarily driven by what appears to be a firm grip on the pandemic with higher vaccination rates and falling infection rates, leading to a strong rebound in economic activity,” WGC Regional CEO, India, Somasundaram PR said.

Going forward, imports might not be very significant in the fourth quarter as little bit of stocking up for the festive season has already taken place during the third quarter of 2021, he stated.

“Looking ahead with restrictions being gradually lifted across the country, retail demand is bouncing back to pre-COVID levels. 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,” said Somasundaram. As per the report, total jewellery demand in India for the quarter under review increased by 58 per cent to 96.2 tonnes, compared to 60.8 tonnes during the July-September quarter of 2020. While in value, jewellery demand grew by 48 per cent at Rs 41,030 crore, as against Rs 27,750 crore a year ago.

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