Gold demand will increase in India this year, people are lining up to buy jewellery!

The World Gold Council has estimated that gold consumption in India will increase this year as compared to last year. According to the World Gold Council, demand is expected to increase due to better monsoon and reduction in duty on gold. WGC has said that 850 tonnes of gold is expected to be consumed in India this year, whereas 750 tonnes of gold was consumed in India in 2023. That is, about 13.5 percent more gold can be purchased in the country this year as compared to last year. According to the World Gold Council, this year jewellery will play the biggest role in increasing the demand for gold in India.

Effect of reduction in import duty on gold!

WGC estimates that the demand for gold in India may increase by 10% on an annual basis to reach 230 tonnes in the July-September quarter. This trend of increase in demand for gold is expected to continue in the fourth quarter i.e. October-December as well. During this period, festivals like Diwali and Dhanteras are celebrated, where the maximum sale of gold takes place. However, in the April-June quarter this year, the demand for gold fell by 5% to 158.1 tonnes.

According to the World Gold Council, in the last quarter, there was a decline in the demand for gold due to the high import duty on it. The World Gold Council says that this time in the general budget, the government reduced the duty on gold from 15 percent to 6 percent on July 23, after which there has been an increase in the demand for gold.

Increased popularity of Gold ETF!

Along with this, WGC has also predicted that gold is now becoming a financial instrument in India because the popularity of gold exchange traded funds is increasing. The reason for saying this is that in recent times, there has been an increase in investment in gold exchange traded funds. Currently, only 50 tonnes of gold is kept in India through ETF, but its capacity is also expected to increase in the coming years.

According to the World Gold Council, when the US presidential election is held in the first week of November, there can be volatility in gold prices. India is completely dependent on imports to meet its gold requirements and any change in international prices affects the price of gold in India.