Insights: Items tagged with "india gold price"

India’s gold market update: festival acts as a catalyst for demand

International and domestic gold prices moderated from the April peaks but ended the month with gains following the notable price rise of March. After a weak March and April, there was resurgence in gold demand around the Akshaya Tritiya festival. Domestic gold prices continue to trade at a discount in relation to the international prices, but the discounts have narrowed from a month ago. Meanwhile, the RBI added to its gold reserves in April and gold ETFs witnessed outflows for the first time in 12 months.

India’s gold market update: unprecedented gold price rises, suppressed consumer demand and rising official gold reserves

International and domestic gold prices have risen to unprecedented levels. The price surge has impacted jewellery demand but stimulated investment (bar and coin) demand. Domestic gold prices continues to trade at a discount in relation to the international prices. Meanwhile, the RBI added to its gold reserves in March, inflows into gold ETFs moderated and imports saw a sharp fall. 

India’s gold market update: high prices dent consumer demand

International and domestic gold prices alike touched record high in early March. The price surge presents headwinds for gold demand, even in the face of the ongoing wedding season. Domestic gold prices is trading at a discount in relation to the international prices with demand being crimped by high prices. Meanwhile, the RBI added to its gold reserves in February, inflows into gold ETFs maintained positive momentum and imports saw a sharp rise.

India’s gold market update: high prices tempering demand in Q4

Gold price in INR rose in tandem (11% since October) with the LBMA Gold Price PM in USD, due to the stable INR/USD.

India’s gold market in June: retail demand remained muted and imports declined

The domestic gold price declined by 0.7% during June, ending the month at Rs50,809/10g. Retail demand remained muted as the wedding season ended and sowing activity picked up with the onset of the monsoon.

India’s gold market in January: retail demand remained soft and imports declined

India’s gold market in March: Indian imports were highest in a decade amid robust retail demand and re-stocking by trade

India’s gold market in November: Indian retail demand continued to improve with Dhanteras and wedding sales

Gold demand tailed off in second half of December with start of inauspicious period and higher gold price

Wedding and stable domestic gold price at ~Rs 37800/10gm helped demand in first half of December but demand tailed off after 15th December after the beginning of inauspicious period and rising gold price which jumped by 3.7% from mid-December till end of the month.

Higher prices and custom duty dampened Indian demand in July

• Indian gold imports reached just 37.7t in July 2019 – 49% lower than the same month last year 
• The domestic gold price was 2.3% higher in July compared to June; 23% higher y-t-d
• The custom duty on gold was unexpectedly raised by 2.5% in the Union Budget on 5th July
• With elevated domestic gold prices and a higher custom duty, the discount in the local gold market reached a peak of US$28/oz in July
• Volatile prices and weak physical demand encouraged healthy gold futures trading on MCX: volumes touched a high of 46.8t in July

Higher domestic price and monsoon dents Indian gold demand in June

Summary

• Indian gold imports were 62t in June 2019 – up slightly on the same month last year 
• The domestic gold price was 6.1% higher in June as compared to end of May
• With higher domestic gold prices, the local discount in the gold market reached $23/oz (1.6% to the international price) by end of June
• Higher and relatively volatile prices encouraged gold futures trading on MCX: volumes touched a high of 28.2t in June