Gold demand up 10% on large scale investments

Gold demand in the September quarter was up 10 per cent at 210 tonne against 192 tonne in same period last year, largely driven by investment demand.

Jewellery demand was up 7 per cent at 156 tonne (146 tonne) and investments increased to 20 per cent to 54 tonne (45 tonne). Bars and coins demand jumped 20 per cent to 54 tonne (45 tonne).

Gold imports rose 20 per cent to 220 tonne (184 tonne) while recycling of gold jewellery was up 19 tonne (16 tonne).

• Also Read: Gold prices surge ₹4,150 in Oct amid global uncertainty, geopolitical tensions

Given the global economic uncertainty, central banks buying of gold hit 800 tonne so far this year though it fell 37 per cent in September quarter to 337 tonne (459 tonne). RBI joined other central banks by buying 19 tonne of gold in the quarter.

The People’s Bank of China regained the title of the largest buyer globally, increasing its gold reserves by 78 tonne in the quarter. Since the start of the year, the PBoC has increased its gold holdings by 181 tonne to 2,192 tonne (equivalent to 4 per cent of total reserves).

• Also Read: Bullion Cues: Gold retains bullishness

Somasundaram PR, Regional CEO (India), World Gold Council said going ahead gold demand in Q4 will depend on prices and is expected to be lower than last year as prices are expected to stay firm given the geopolitical issues.

WGC has predicted the demand to range between 700-750 tonne for this year marginally lower than last year’s 774 tonne.

Moreover, with the demand in last three quarters hovering around 481 tonne, the overall this year demand is expected to be lower than last year’s level as prices are unlikely to drop drastically to boost demand, he said.