Commodities

Demand for gold surges amid Covid relaxations

Suresh P Iyengar Mumbai | Updated on October 28, 2021

Jewellery demand up by 58 per cent in September quarter

Gold demand in the September quarter increased 47 per cent to 139 tonnes, against 95 tonnes logged in the same period last year, as Covid-induced restrictions eased across the country.

Jewellery demand was up 58 per cent at 96 tonnes (61 tonnes), buoyed by stable prices and pent-up purchases.

In value terms, demand was up 48 per cent at ₹41,030 crore (₹27,750 crore), while in dollar terms it jumped 49 per cent to $5.5 billion ($3.7 billion).

Gold in RBI’s forex reserves rise 11% to 744 tonnes

Investments in gold increased 19 per cent to ₹18,300 crore (₹15,410 crore).

Somasundaram PR, Regional CEO, India, World Gold Council, said the revival in demand reflects a combination of low base effect and return of positive trade and consumer sentiments.

It was primarily driven by what appears to be a firm grip on the pandemic, with the higher vaccination rates and falling infection rates leading to a strong rebound in economic activity, he added.

Gold imports touch a decade high level of $23.9 billion in H1

Softer gold prices have also generated significant consumer interest ahead of the seasonal demand and it will further rebound in the December quarter, he said.

Published on October 28, 2021

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