Kavita Chacko

The inauspicious period from mid-December to mid-January is likely to weigh on jewellery demand, while investment interest is expected to be sustained.

The busy wedding season over the coming months (November–March), with a high number of anticipated weddings, is expected to support jewellery demand. Investment interest in gold is likely to persist amid broadly bullish sentiment around gold.

Gold continues its extraordinary price rally, having reached 48 all-time highs this year. Geopolitical tensions, strong investment demand, dollar weakness, financial market risk and expectations of dovish Fed policy lifted international prices by 11.6% in September and by an additional 7.9% in the first two weeks of October, pushing past the US$4,000/oz milestone.

Gold prices regains momentum, hits new records; discounts narrow in India. Investment demand steers festive gold buying revival.

As the festive and wedding season approaches, there are signs that gold jewellery demand is gaining momentum, and with investment interest holding firm, overall gold demand could receive a boost.

Gold extends gains in July, remains top performer with y-t-d gains of 28%. Seasonal weakness weighs on jewellery sales; investment buying gains ground.

The June–July period typically marks the off-season for gold in India, particularly for jewellery. A recovery in demand is anticipated with the onset of the festive and auspicious buying season from mid-August.

Stability in prices could prompt a resurgence in demand. Consumer sentiment that the downside to gold prices is limited would reinforce gold’s appeal as a reliable investment.

Seasonal and wedding related purchases may support gold demand this month and next. Investor interest is likely to strengthen as gold’s appeal as a safe-haven asset and portfolio diversifier heightens amid global economic uncertainties and financial market volatility.

Gold’s price momentum remains strong, breaching records, with domestic gold prices seeing gains of 13% y-t-d. Price rise dampens jewellery purchases, boosts old gold sales, while investment demand is sustained: gold ETFs saw healthy inflows in February, though below January’s peak.

Domestic prices track international highs, but demand pressure results in deeper discounts from local dealers. Price surge dims jewellery demand, while investment interest lingers.

Even with a price moderation in November and December, gold surpasses other key asset classes to lead returns in 2024. Jewellery demand slowed amid high prices and an inauspicious period on the Hindu calendar.

Jewellery demand weakens post-Diwali, while investment demand for gold bars and coins remains strong. Indian gold ETFs maintain strong inflows, adding 14.5t year-to-date.

Despite record-high prices Diwali gold demand was healthy, with strong sales driven by investment appeal. Indian gold ETFs continue to attract strong interest from investors, with October seeing the largest inflows on record. The Reserve Bank of India (RBI) has purchased 64t of gold to date this year, making it the second highest annual purchase on record. Uptick in gold imports in October.

The surge in demand from the import duty cut was tempered by fresh record-high prices and an inauspicious period in September according to the Hindu calendar. Domestic gold prices are currently at a slight discount over landed cost1 amid normalising demand. However, signs of festive buying are beginning to emerge. With an addition of 54.7t y-t-d,2  the Reserve Bank of India’s (RBI) gold reserves have grown by 7%. Increased interest in Indian gold ETFs; inflow momentum remains strong. Gold imports see moderation in imports after August surge.