In 2023, gold demand decreased by 3 percent to 747 tons

MUMBAI: The country's gold demand is expected to remain subdued in the first quarter of the current calendar year 2024 due to weak jewelery sales, but the full year is likely to see an increase in demand as gold buyers adjust to higher prices, the World Gold Council (WGC) said. was In 2023, gold demand decreased by 3 percent year-on-year to 747.50 tons.

In the December quarter, the demand fell by four percent to 266.20 tonnes.

While gold prices are currently hovering around record highs, prices will be supported at higher levels in the new year with rising demand in the country. However, an increase in gold imports will lead to an increase in the country's trade deficit and may put pressure on the rupee.

India's gold demand has been between 700 and 800 tonnes for the last five years, but it is expected to rise to between 800 and 900 tonnes in 2024, said Somasundaram P, CEO of the Council for India. R. was told by

High gold prices have now been eclipsed and demand levels are expected to fall between 800 and 900 tonnes on the back of strong economic growth in the country.

Due to higher prices, India's gold demand in 2023 fell by 3 percent year-on-year to 747.50 tonnes. Which was the lowest since 2020. The demand for jewelery fell due to higher prices, which had an impact on gold imports. Last year saw record prices of gold. In 2023, the investment demand figure for gold was 185.20 tons.

India imports its gold mostly from Ghana, UAE, Switzerland and UAE.

In the March quarter of 2024, demand is low due to fewer days of festivals and weddings in the country. Most of the demand for gold in India is for weddings.

He also said that there has been an increase in smuggling of gold due to high prices. It is estimated that approximately 130 tons of gold was smuggled in the December quarter. Which was 110 tons in the December quarter of 2022.

The Reserve Bank of India purchased 16.20 tonnes of gold in 2023, which was 32 tonnes in 2022.

Last year, global demand for gold hit an all-time high with 4,899 tonnes

Compared to 2022, the global demand for gold in 2023 decreased by five percent to 4448 tons. However, if the OTC (over the counter) market and other sources are added, gold demand rose to 4,899 tonnes last year, a new annual record. The World Gold Council said that a new record was seen in gold purchases last year due to central banks and OTC purchases.

In 2023, outflows were seen in gold ETFs for the third year in a row. Outflows in ETFS in 2023 were 244.40 tonnes as compared to 109.50 tonnes in 2022. Last year, the global average price of gold was 8 percent higher year-on-year to $1,940.54 per ounce.