From The Economic Times · Sutanuka Ghosal · · 1m 20s
Gold Demand Rises as Festive Season Approaches
India's gold market sees stronger demand as festive and wedding season begins.
In brief
India's gold market sees stronger demand as festive and wedding season begins. India's gold market shows increased demand during festive and wedding season with retailers reporting strong sales growth and higher investor participation in gold ETFs. Originally reported by The Economic Times.
Seasonal Gold Demand Gains Traction
Seasonal gold demand is gaining traction as the market enters the key festive and wedding period with recent gold price declines providing support to demand.
Retailers Report Strong Sales Growth
Jewellery retailers reported strong double-digit revenue growth of 20-30% y/y in July-September quarter despite elevated gold prices and a less favourable festive calendar.
Increased Marketing and Promotional Activity
Jewellers focused on fresh designs and lighter weight pieces to improve wearability while increasing marketing and promotional activity.
Old-Gold Exchange Boosts Demand
Old-gold exchange transactions rose by more than 10% y/y and accounted for over 50% of sales for some retailers.
Investment Demand Moderates
Bar and coin demand reportedly moderated as price momentum eased, tempering investment-related buying seen during earlier price rallies.
Gold ETFs See Stronger Inflows
Indian gold ETFs saw stronger net inflows in September, with Rs 44.5bn (US$466.2mn) added to holdings, the highest in seven months.
Investor Participation Rises
Gold ETFs added 140,231 new folios during September, taking total folios to 12.68mn, indicating increased investor participation.
The key point
India's gold market shows increased demand during festive and wedding season with retailers reporting strong sales growth and higher investor participation in gold ETFs.
