- The domestic gold price ended 28% higher in 2020 at Rs50,005/10g
- The economic recovery momentum held up in December
- Retail gold demand was supported by a mix of jewellery and investment demand during the month
- The resurgence of a second wave of Covid-19 infections, as well as the emergence of the new strain of the virus and a higher gold price, led to ETF inflows in December. Total holdings for Indian gold ETFs reached 28.3t at the end of 2020; a net inflow of 1t in December and 13.5t in 2020
- The Reserve Bank of India (RBI) added 3.7t of gold in December and 41.6t in 2020
Economic recovery momentum held up in December
After making a strong recovery since COVID restrictions were eased in September, the pace began to moderate in November. High frequency indicators for December, however, signalled continued momentum in this economic recovery (Table 1).