India Gold Demand

Gold imports, which have a bearing on the current account deficit, declined 17.38 per cent to about USD 24 billion during April-October due to fall in demand, according to the data of the commerce ministry. Imports of the yellow metal stood at USD 29 billion in the corresponding period of 2021-22. The imports during October this year also contracted by 27.47 per cent to USD 3.7 billion, the data showed. Silver imports during the month too dipped 34.80 per cent to USD 585 million. Cumulatively, the imports, however, jumped to USD 4.8 billion as against USD 1.52 billion during April-October 2021-22. The merchandise trade deficit for April-October 2022 was estimated at USD 173.46 billion as against USD 94.16 billion in the year-ago period. India is the largest importer of gold, which mainly caters to the demand of the jewellery industry. In volume terms, the country imports 800-900 tonne of gold annually. Gems and jewellery exports rose marginally by 1.81 per cent to USD 24 billion

The reserves had increased by 100 tonnes in the last two years; currently stand at 785.35 tonnes

Falling demand for gold imports could also help to narrow India's trade deficit and support the rupee

Demand for gold jewelry, coins and bars typically peaks in the world's second-biggest consumer over October to December, driven by festivals including Diwali

In a Q&A, the council's Global Chief Market-Strategist said the price of gold will face headwinds in the near future

Use current correction to build a 10-15% allocation to yellow metal

At the global level, the demand for gold (excluding OTC) was 8 per cent lower y-o-y at 948 tonnes. Combined with Q1-2022, the total demand in the first half of 2022 came in at 2,189t, up 12 per cent

India's demand for gold will be between 800-850 tonne in 2022, said a top official of World Gold Council-India.

India's gold jewellery demand is likely to grow steadily at 11 per cent during the current financial year due to strong retail performance last year, according to a report. Within the jewellery retail industry, revenues of organised retailers are likely to grow at a higher pace of 14 per cent, backed by their aggressive store expansion plans and a gradual shift from the unorganised segment towards the organised one, Icra Ratings said in a report. Demand during the current Akshaya Tritiya season is expected to be strong, leading to a healthy demand growth of around 45 per cent Y-o-Y in the first quarter of FY23. Growth for FY23 is expected at 11 per cent for the industry, despite a high base witnessed in FY22, driven by the anticipated steady wedding and festive purchases during the current fiscal, given Indian consumer's strong cultural affinity towards gold," Icra Senior Vice President and Group Head Jayanta Roy said. Interestingly, at the forecasted level, gold jewellery demand in

The Gold and Gold Markets 2022 report by India Gold Policy Centre (IGPC) also said that people in the higher income group are interested in having the yellow metal in digital or paper format

Weddings were the primary reason for buying gold, with 43 per cent of the Indian households surveyed buying the yellow metal for this purpose

The South Asian country is the world's second-biggest consumer of the metal and fulfils most of its demand through imports.

India's gold imports, which has a bearing on the country's current account deficit (CAD), more than doubled to $38 billion during April-December this fiscal

Busy wedding season from the second half of January has been affected by restrictions on gatherings.

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The rate of gold jewellery varies across the nation due to excise duty, state taxes, and making charges.

The price of gold differs across the nation owing to excise duty, state taxes, and making charges.

Typically, July - September is a seasonally weak period for gold demand due to monsoons and inauspicious periods like Pitru-Paksha when buyers usually prefer to postpone gold purchases

Demand for the precious metal usually spikes towards the end of the year in India, as buying gold for weddings and major festivals such as Diwali and Dussehra is considered auspicious.

India demand for gold in Q2 FY22 jumped 47% YoY to 139.1 tonnes, compared with 94.6 tonnes in the year-ago period. How will the year 2022 prove for gold? Is it a good time to buy? Let's find out