Summary:

The impending festival and wedding season, along with decreased import duties, are expected to boost Indian gold demand. Jewelry purchases are anticipated to increase, with gold imports doubling to 140 tonnes in August after customs duties were reduced from 15% to 6%. This trend is expected to continue, aided by stronger crop forecasts and higher discretionary earnings for farmers, particularly during peak purchasing months such as Diwali, December, and January.

"The pro-gold policy measures are positively impacting the domestic gold market," said Sachin Jain, the World Gold Council's regional CEO for India. He highlighted that these adjustments could increase gold demand by more than 50 tonnes in the second half of 2024, with overall requirements anticipated to be between 750 and 850 tonnes. This follows a slight 4.8% year-on-year growth in inbound shipments, which reached 305 tonnes in the first half of 2024. The increase in purchases strengthens India's position as a major player in global physical gold consumption, particularly as jewelry demand in China declines.

Source: IBEF 

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