Gold demand surges by volume - and value - in Q3 2023
Softer prices and festive demand helped India’s gold demand increase by 10% in the third quarter of 2023 to 210 tonnes from 191.7 tonnes in Q3 2022. In value terms, the demand increased by 28% to ₹188,400 crore from ₹147,220 crore during Q3 2022.
Total jewellery demand in India for Q3 2023 increased by 7% at 155.7 tonnes as compared to Q3 2022 (146.2 tonnes). In terms of value, jewellery demand was ₹139,550 crore, up by 24% from Q3 2022 (₹112,330 crore), says data from the World Gold Council (WGC), which tracks the sale of gold globally at the wholesale level.
''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'', says Somasundaram PR, Regional CEO, India, World Gold Council.
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Total investment demand (bars and coins) for Q3 2023 at 54.5 tonnes increased by 20% in comparison to Q3 2022 (45.4 tonnes). In value terms, gold investment demand in Q3 2023 was ₹48,850 crore, up by 40% from Q3 2022 (₹34,900 crore). ''Price correction was a major factor that triggered the latent demand'', says Somasundaram. It will continue to be strong, underpinned by strong positive economic sentiment mixed with uncertainties arising from a variety of factors such as fear of inflation, below-normal monsoon and global developments, he says.
Gold recycling in India recorded 19.3 tonnes, a 20% growth over last year, which is more due to the low base of last year and perhaps some profit taking.
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WGC says Q4 will get the usual seasonal boost due to festivals and wedding purchases, however, any sharp price rise could delay the release of pent-up demand following a relatively weak H1.
With the first nine months' demand at 481.2 tonnes, WGC's estimate for full-year gold demand is in the range of 700-750 tonnes, marginally lower than last year's demand of 774 tonnes.