A significant 20 percent QoQ (Quarter on quarter) jump in demand has been observed for precious metals with demand for gold remaining high, almost at 3X of silver during the festive season.
Gold prices have fallen since reaching the peak in August 2020 and this festive season has remained the most searched precious metal, as per the data shared by local search platform Just Dial. While demand for gold was 3X of silver, the latter saw the highest QoQ growth in demand of 30 percent while demand for both gold and diamond saw a growth of 18 percent.
“Correction in gold prices and strong demand triggered by the festive season across the country have made the yellow metal the most sought after. With volatility in the market, we will see more and more consumers investing in gold for security reasons,” said Prasun Kumar, CMO, Just Dial.
The demand for gold in Tier I cities remained high, but it was also interesting to witness faster growth in demand in Tier II cities led by Lucknow, Jaipur and Coimbatore.
In terms of demand volume (searches) for gold, Mumbai, Delhi and Hyderabad were the top-3 Tier I cities followed by Bangalore, Chennai, Kolkata, Pune, and Ahmedabad. Among Tier II cities, Lucknow, Jaipur, and Coimbatore were the top-3 with maximum demand followed by Vijayawada, Surat, Rajkot, Visakhapatnam, Patna, Chandigarh, and Thrissur. Most of the demand for gold was for jewellery, coins, and bars. Demand for gold jewellery has picked up by 20 percent QoQ with chain, necklace and nose ring are the most sought after.