On account of festival buying in India, gold imports in the second biggest consumer of the precious metal has risen to the tune of 40 per cent in August 2023. India's gold imports grew to $4.9 bn, which stood at $3.5 bn in August 2022.
Gold purchases usually pick up in the second half of the year during festivals, which culminate with Diwali in October or November, weddings and as an auspicious investment. An expected rise in purchases during the festive months could help pare a drop in this year’s consumption, hit by elevated local prices and a slowdown in discretionary spending.
The value of gold imports also jumped during August partly because of a rise of 12% in overseas spot prices in the past year and a lower base in 2022 when imports slumped 30%.
According to the World Gold Council, gold demand in India for August is forecast to drop this year to 650 tons to 750 tons, the lowest since the coronavirus pandemic hit the country in 2020. India imports almost all the gold it uses mainly from Switzerland.
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
