Indian appetite for gold surged by more than a third in the last quarter, as compared to the rest of the world.
As the wedding season is on cards, Indian appetite for gold surged by more than a third in the last quarter, as compared to the rest of the world. Furthur, it was observed by the World Gold council that the demand was boosted by the increase in the appetite for gold jewellery, says a Reuters report, citing the industry body.
Besides, the demand for gold in India rose to 39 per cent to 225.1 tonnes in July-Sept - the second highest on record for the quarter, even as global appetite fell to its lowest in nearly five years,as per WGC.
Commenting on the matter, Somasundaram PR, head of the WGC's India operations, told Reuters: "Demand will continue to have positive growth over last year as this is a good demand period and a lot of marriages are happening."
Futhur, the report said that jewellery demand in India surged 60 per cent in the third quarter, but investment demand eased 10 per cent.
However, ‘Investment demand is likely to reduce to 25 per cent of total demand this year, from 37 per cent the year before. As a sharp price drop has shaken the confidence of Indians in bullion as a store of value,’added Somasundaram.
The WGC said jewellery demand was also boosted by a weakening of gold prices in rupee terms and by widespread confidence in a new government, along with the onset of the festival season.
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