- The domestic gold price ended 1.6% lower in January 2021 at Rs49,205/10g
- Economic recovery momentum remained steady
- Investment and jewellery demand boosted retail demand during the month
- A correction in the domestic gold price and the expectation of a recovery led to ETF inflows. Total holdings for Indian gold ETFs reached 29.1t at the end of January; a net inflow of 0.8t
- The Reserve Bank of India (RBI) made no gold purchases during the month, maintaining its gold reserves at 676.6t.
The momentum in economic recovery remained steady in January
The recovery in economic activity that started in September 2020 has been sustained so far this year with various high frequency indicators expanding in January y-o-y (Table 1).