India's Gold Market Recovers with Strong Jewellery Demand Ahead of Festive Season
India's gold market is experiencing a significant upturn, with strong indications of recovery in jewellery demand and increased imports as the country gears up for its crucial festive season. According to the World Gold Council (WGC), lower and more stable gold prices have played a pivotal role in encouraging consumer purchases, reversing a trend of subdued demand that followed a sharp price correction in June. International gold prices saw a 9% increase in the first two weeks of August, while domestic prices in India climbed nearly 7% to reach approximately ₹151,744 per 10 grams by August 14.
This renewed consumer confidence has prompted retailers and manufacturers to actively replenish their inventories in anticipation of higher sales during the festive period. The recovery is further evidenced by a sharp rebound in gold imports, which more than doubled in July to $4.16 billion from $1.97 billion in June, with estimated import volumes rising to 40-45 tonnes. While investment demand for gold remains supportive, it has moderated slightly from earlier elevated levels. Overall, the market's current trajectory suggests a positive outlook for the jewellery and retail sectors, driven by consumer optimism and strategic preparations by industry players to meet the anticipated festive rush.
