Jewelry sales rose 4% to 95 tonnes, bringing overall gold demand 8% higher than a year earlier to 136.6 tonnes, according to a report released Tuesday by the World Gold Council (WGC) .
The WGC kept India’s gold demand forecast for the full year at 700-800 tonnes. If the current price rise continues, sales could be at the lower end of this range.
“The price correction in February piqued investor interest, with anticipation of a rebound that would boost buying. As prices hit successive record highs, investors remained optimistic, contributing to strong demand ” said Sachin Jain, regional managing director for India at WGC.
“Investments in gold ETFs also saw positive inflows of over two tonnes. The Reserve Bank of India also increased its gold reserves by 19 tonnes in the first quarter, surpassing annual net purchases of 16 tonnes last year,” he said.
Millennials, in particular, are buying gold bars and coins to invest in growing their assets, he said.
In value terms, gold investment demand in Q1 2024 stood at ₹22,720 crore, up 32% from the previous year. The sales volume of gold bars and coins amounted to 41 tons.
India recycled 38.3 tonnes of gold in the first quarter, up 10% from 34.8 tonnes in the first quarter of 2023. It imported 179.4 tonnes of the yellow metal, up 25% from compared to 143.4 tonnes a year earlier.
“The continued strong macroeconomic environment in India supported gold jewelry consumption, even as prices hit an all-time high in March, leading to a slowdown in sales at the end of the quarter,” Jain said.
Although Indian recycling volumes increased by 10%, very few cases of distress sales were reported, the WGC said.
