GJ Town India

  Demand in the 9k to 18k would be seen for heavier jewellery   Recently, World Gold Council published tis Gold Demand Trends, Q2 2025 & reported that, Indian gold jewellery consumption in Q2 fell by 17% y/y to 89t, as gold prices breached the psychological Rs100,000/10g mark for the first time.   Consequently, H1 demand of 160t was the second lowest in our data series from Q1 2000 – only the COVID-hit 2020 was lower (at 118t). The value of gold jewellery consumption showed a markedly different trend: spending in US$ rose 17% y/y and 43% q/q.   In volume terms, the record gold price severely impacted affordability. This mainly impacted the mass market segment; the average weight of pieces bought by wealthier consumers remained relatively unchanged.    The shift towards lighter-weight items continued in the record price environment, with consumers increasingly favouring 18k plain gold jewellery due to affordability. Gold-plated silver je...

  With emerging market demand softening, who drives gold next   Recently, World Gold Council [WGC] said, Stubborn stagflation about gold in their published, Gold Market Commentary. The report suggests further, the relationship between the price of gold and its core drivers shifts over time, sometimes reflecting who is most active in the market. For example, US real interest rates (opportunity cost) were tightly linked to movements in gold between 2007 and 2022.   Last month we suggested that one reason for gold’s decoupling from rates post 2022 was the preponderance of emerging market demand from central banks and other investors, rather than a breakdown in US investor relationship with rates.   Now that central banks and Asian investors have stepped back a bit, as indicated by our Gold Demand Trends data, local premia and intraday session returns, a tighter gold-rates relationship could re-establish itself and Western investors (particularly the US) could become mor...

Global gold hits record highs, increased demand 4%   The World Gold Council (WGC)’s Q2 2024 Gold Demand Trends report reveals that total global gold demand increased 4% year-on-year to 1,258t, marking the strongest Q2 in our data series 1 . Total demand was supported by healthy over-the-counter (OTC2) transactions, up a notable 53% year-on-year at 329t.   Increased OTC demand, continued buying from central banks, and a slowdown in ETF outflows drove record-high gold prices in Q2. The gold price averaged US$2,338/oz, 18% higher year-on-year, reaching a record of US$2,427/oz during the quarter.   Central banks and official institutions increased global gold holdings by 183t, slowing down from the previous quarter but still reflecting a 6% increase year-on-year. Our annual central bank survey confirmed that reserve managers believe gold allocations will continue to rise over the next 12 months, driven by the need for portfolio protection and diversification in a complex econ...