The WGC forecasts India’s full-year gold demand to be between 700-800 tonnes, depending on the price trajectory
Kerala is leading India in per capita gold consumption, with an annual intake of 200-225 tonnes, according to Sachin Jain, Regional CEO of the World Gold Council (WGC). Speaking in Kochi on Friday, Jain noted that Kerala likely has the highest per capita gold consumption in the country. He also stated that gold prices are unlikely to drop in the near future due to ongoing geopolitical uncertainties and central banks’ purchasing activities.
The gold market in Kerala is robust, with over 15,000 establishments trading in gold and silver jewellery. Jain emphasized the high standards of quality maintained in the state, mentioning that nearly 100% of gold and precious stones sold in Kerala are hallmarked.
Cultural and seasonal factors, such as festivals and weddings, along with expectations of a favorable monsoon and strong economic growth, are likely to sustain demand
India’s overall gold demand in 2023 was 747.5 tonnes, a 3% decrease from the previous year, attributed to rising gold prices. However, the demand for gold in Q1 2024 showed a positive trend, reaching 136.6 tonnes, an 8% increase compared to Q1 2023. Jewellery demand also rose, with Q1 2024 seeing a 4% increase to 95.5 tonnes, and the value of jewellery demand surged by 15% to Rs 52,750 crore from Rs 45,890 crore in Q1 2023.
Looking ahead, Jain expressed optimism for the gold market in India, despite current high prices potentially dampening demand temporarily. Cultural and seasonal factors, such as festivals and weddings, along with expectations of a favorable monsoon and strong economic growth, are likely to sustain demand.
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