The demand for gold in India for Q3 2023 was at 210.2 tonnes up by 10% as compared to overall Q3 demand for 2022 which recorded 191.7 tonnes, the World Gold Council (WGC) reported.
Total Jewellery demand in India for Q3 2023 increased by 7% at 155.7 tonnes as compared to Q3 2022 at 146.2 tonnes. Total Investment demand for Q3 2023 at 54.5 tonnes increased by 20% in comparison to Q3 2022 at 45.4 tonnes. Total gold recycled in India in Q3 2023 was 19.2 tonnes, up by 20% compared to 16 tonnes in Q3 2022. Total gold imports in India in Q3 2023 was 220 tonnes, up by 19% compared to 184.5 tonnes in Q3 2022, as per WGC.
Somasundaram PR, Regional CEO, India, World Gold Council said: “India’s gold demand of 210t in Q3 2023 was higher by 10% over Q3 2022 of 191.7t. Purchase of gold jewellery in India was up 7% y-o-y aided by softer gold prices and festive demand, more pronounced in South India.
Investment gold demand, that is bars and coins, jumped 20% to 54.5t from 45.4t in Q3 of the previous year. Price correction was a major factor that triggered the latent demand which we believe continues to be strong. Gold recycling in India recorded 19.3t, a 20% growth over last year, which is more due to low base of last year and perhaps some profit taking. With HUID in place, policy and tax incentives for recycling of HUID marked pieces can be enabled to grow recycling.
Q4 will get the usual seasonal boost due to festivals and wedding purchases, however any sharp price rise could delay release of pent-up demand following a relatively weak H1. Trade feedback is that consumers have accepted the $721 per 10g price point so a downward correction could trigger a significant jump too. With first nine months demand at 481.2t, our estimate for full year gold demand is in the range of 700-750t, marginally lower than last year's demand of 774t.”
Aruna Gaitonde, Editor in Chief of the Asian Bureau, Rough & Polished
