Jewellery demand in India grew by 15% YoY

Gold Demand in market India grew by 8% in Q1 2023 

Sachin Jain, Regional CEO, India, World Gold Council said, In Q1’24, India's total gold demand was 136.7 tonnes, up by 8% in comparison to 126.3 tonnes in Q1 2023 reaffirming Indians enduring relationship with gold. Gold jewellery demand was 95 tonnes, 4% above the comparatively weak Q1’23.  

India’s continued strong macroeconomic environment was supportive for gold jewellery consumption even though prices reached a historic high in March leading to a slowdown in sales as the quarter ended.  

Q1’24 also saw healthy levels of gold bar and coin demand in India, up 19% y/y at 41t. This was on a par with Q1’22, which was itself the strongest first quarter since 2014. The price correction in February sparked investors’ interest, with anticipation of a rebound driving purchases.  

As the price rallied to successive record highs, investors remained bullish, contributing to the robust demand. Investments into gold ETF’s too saw positive inflows of over 2 tonnes. The Reserve Bank of India also grew its gold reserves by 19 tonnes during Q1, exceeding last year’s annual net purchases of 16 tonnes.  

Although Indian recycling volumes increased by 10% to 38.3 tonnes in Q1’24, there were very few reports of distress selling. With a strong economy and expectations of a normal-to-good monsoon, there seems little desire to cash in on high gold prices at the moment. 

As we look forward, while the current high gold prices may temporarily put strain on demand, strong cultural and seasonal factors such as festivals, weddings helped by an expectation for a better monsoon and solid economic growth would support demand. Our full year gold demand forecast for India is between 700-800 tonnes, if price rally continues it could be lower end of this range.”  

Key takeaways of Q1’24 are, 1: Demand for gold in India for Q1 2024 was at 136.6 tonnes, up by 8% as compared to overall Q1 demand for 2023 (126.3 tonnes), 2: India’s Q1 2024 gold demand value was Rs. 75,470 crores, up by 20% as compared to Q1 2023 (Rs 63,090 crores), 3: Total Jewellery demand in India for Q1 2024 increased by 4% at 95.5 tonnes as compared to Q1 2023 (91.9 tonnes).  

4: The value of jewellery demand was Rs 52,750 crores, up by 15% from Q1 2023 (Rs. 45,890 crores), 5: Total Investment demand for Q1 2024 at 41.1 tonnes increased by 19% in comparison to Q1 2023 (34.4 tonnes), 6: In value terms, gold Investment demand in Q1 2024 was Rs. 22,720 crores, up by 32% from Q1 2023 (Rs. 17,200 crores).  

7: Total gold recycled in India in Q1 2024 was 38.3 tonnes, up by 10% compared to 34.8 tonnes in Q1 2023, 8: Total gold imports in India in Q1 2024 was 179.4 tonnes, up by 25% compared to 143.4 tonnes in Q1 2023, 9: US$/oz average quarterly price in Q1 2024 was US$ 2,069.8 in comparison to US$ 1,889.9 in Q1 2023 & 10: INR/10g average quarterly price in Q1 2024 was INR 55,247.20 in comparison to INR 49,943.80 in Q1 2023 (without import duty and GST).