GOLD NEWS

WGC: Unprecedented Gold Price Surge Dented Consumer Demand

Mon April 29 2024

The India gold market report published by the World Gold Council (WGC) stated that the unprecedented surge in international and domestic gold prices led to suppressed consumer demand for gold in the country.

Gold prices have been witnessing strong rally since mid-February this year. The prices, which recorded 8% surge in March, further increased by over 3% in April. The domestic landed price of gold has risen by 4% in comparison with 3% surge in the LBMA Gold Price, till date in April.

The unprecedented momentum in price uptick has impacted gold consumption demand, especially the consumer demand for gold jewellery. The consumers are seen looking forward to a stabilization in prices before venturing out into fresh purchases of the yellow metal. The election-related restrictions coupled with fewer weddings this year too has impacted demand, WGC report noted.

At the same time, the Reserve Bank of India (RBI) continued to build its gold reserves, adding around 18.5 tonnes since the start of the year. The reserves have touched an all-time high of 822.1 tonnes, it said. The momentum in inflows into Indian gold-linked ETFs too waned during this period. Looking ahead, the elevated prices are likely to impact consumer demand. At the same time, gold’s strong performance this year may likely trigger investment demand.

Source: https://www.scrapmonster.com/