India's gold demand hits pre-pandemic levels; Q3 gold demand up 14 pc to 191.7 tonnes: WGC

Mumbai, November 1

India’s gold demand has reached pre-pandemic levels and has witnessed an annual growth of 14 per cent during the July-September quarter at 191.7 tonnes mainly driven by strong consumer interest, according to a World Gold Council (WGC) report.

According to the ‘Gold Demand Trends Q3 2022’ report by WGC, the total demand stood at 168 tonnes during the July-September quarter of 2021.

In value terms, gold demand grew by 19 per cent to Rs 85,010 crore during the third quarter of 2022, compared to Rs 71,630 crore in the corresponding period of 2021.

India’s total gold demand in the third quarter of 2022 at 191.7 tonnes is a 14 per cent increase over last year, which reflects better-than-expected performance and strong consumer interest, helping year-to-date demand return to pre-covid levels, Somasundaram PR, Regional CEO, India, World Gold Council, told PTI.

Meanwhile, total jewellery demand in India during the third quarter increased by 17 per cent at 146.2 tonnes, compared to 125.1 tonnes in the same period last year.

Value-wise jewellery demand was up by 22 per cent at Rs 64,860 crore during the quarter under review, from Rs 53,330 crore in July-September 2021.

“Credit expansion added impetus to this demand, with bank loan growth touching a nine-year high by quarter-end. Recovery in gold jewellery demand was primarily driven by urban India, more specifically southern parts, underpinned by robust economic activities with a 17 per cent y-o-y increase in tonnage terms,” Somasundaram noted.