Page 7 - Bullion World Volume 4 Issue 11 November 2024

Bullion World | Volume 4 | Issue 11 | November 2024

In the broader gold market, India’s gold jewellery
demand grew by 10% year-on-year, reaching 171.6
EDITORIAL tonnes in the September quarter. This increase was
largely driven by wedding-related purchases, with
early shopping fuelled by a steep cut in import duties
(on July 23rd), which helped offset rising prices.

India’s central bank continued to build its gold
reserves, adding 13 tonnes in the July-September
Dear Readers, quarter, bringing its total to 854 tonnes—an increase
of 6% from the end of 2023. Globally, central banks
This Dhanteras and Diwali, the festive demand for bought 186.2 tonnes of gold in Q3 2024, signalling
gold in India has remained robust, despite record- continued demand for gold as a safe-haven
high prices. Local gold prices have surged to INR investment.
78,919 per 10 grams, a 31% increase over price level
seen during last Diwali. Indian gold ETPs after experiencing redemption
pressures in April 2024 following record gold prices
Yet, consumer interest in gold jewellery and (USD 2430/ ounce). The net inflows for the first
investments continues to show resilience, with quarter of 2024-2025 FY moderated to INR 1,157
turnover driven largely by rising prices but purchase crore. However, for the second quarter of FY 2024-
volumes remaining steady compared to previous 2025, net inflows more than tripled to INR 4,181
years. The main drivers of gold jewellery demand crore backed by a reduction in customs duty and the
are old gold jewellery exchange and various gold absence of new Sovereign Gold Bond (SGB) issues.
investment schemes, underscoring gold’s position As of June 2024, the number of gold ETF folios stood
as a cherished, stable asset for Indian households. at 54,09,986. By the end of September 2024, this
number had risen to 57,10,499, reflecting a quarter-
A notable trend this Diwali has been a shift toward on-quarter growth of 5.5%.
heavier jewellery, with consumers purchasing not
only for the festival but also in preparation for the
wedding season. Popular items include intricate Best wishes,
necklace sets, bangles, bracelets, and silver articles, G Srivatsava
alongside strong demand for gold and silver bullion. Editor

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please write to editor@bullionworld.in

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