GJ Town India

  Gold investment volume up 7% & value grew 54%    Recently, World Gold Council published India’s Gold Demand Statistics for Q2 2025- for the period of April 2025 to June 2025. At the point, Sachin Jain, Regional CEO, India, World Gold Council said, "As we reflect on the performance of India’s gold market in Q2 2025, it is evident that we are witnessing a pivotal moment in consumer behaviour.    Despite a 10% decline in physical gold demand volumes to 134.9 tonnes compared to 149.7 tonnes last year, the value of this demand has surged by an impressive 30%. This mirrors the rising price of gold, with the average quarterly global price per ounce reaching US$ 3,280.4 and the domestic price per 10 grams touching INR 90,306.8—clear indicators of gold’s enduring appeal as a safe-haven asset.    On the investment front, we are encouraged to see a 7% increase in demand volumes, reaching 46.1 tonnes, and  a remarkable 54% growth in value to Rs. 41,650 ...

  The markets could be jolted by implied bond volatility    Recently World Gold Council [WGC] published their report, Gold Market Commentary: Positioning revisited! Key focal points said, Gold drags itself higher! Gold prices edged up 0.3% to finish July at US$3,299/oz. A stronger US dollar contributed to positive returns in all major currencies. Year-to-date, gold remains up 26%.    Our Gold Return Attribution Model (GRAM) suggests a positive contribution from a rise in inflation expectations and tariff tensions via our geopolitical risk metric (both Risk and Uncertainty factors). Momentum factors also contributed positively, while a stronger US dollar proved a heavy drag on returns in July.    Gold ETF inflows of US$3.2bn (23t) were split almost equally between North America (US$1.4bn, 12t) and Europe (US$1.7bn, 11t), while Asia slightly increased (US$0.1bn,0.8t) and other gold ETFs (-US$0.1bn, -1t) experienced mild outflows. COMEX manage...

  Should gold’s HQLA status be revisited?   Recently, World Gold Council (WGC) published their report, Gold: an HQLA in all but name. In recent months amid trade policy uncertainty, financial markets experienced a decidedly volatile period marked by sharp declines in stock prices, an uncharacteristic selloff in US Treasuries, and a general widening of bid-ask spreads. Against this backdrop, gold confirmed what previous research studies have found: a highly liquid and orderly  market that mitigates market risk in a manner often associated with assets classified as High-Quality Liquid  Assets (HQLAs).    During this period, gold’s volatility, bid-ask spreads, and trading volumes were equivalent to and, in some cases,  better than intermediate and long-term US Treasuries.    Gold is a globally recognised, highly liquid asset with deep trading markets and a history of serving as a safe haven in times of financial stress. However, under the Ba...

  Consumers belief in gold is stronger than ever: Sachin Jain    By considering, festivity of Gudi Padwa, Ugadi, Chaitra Navratri and Ramzan Eid; Sachin Jain, Regional CEO, India, World Gold Council suggest, for generations, gold has been much more than an investment in Indian culture – it is a symbol of good luck and a harbinger of good times, and our households have forged a strong cultural bond with it.   This legacy takes on a fresh meaning this year as gold’s momentum has seen prices rise to historic highs , currently at INR 90,000/10grams or US$3,000 per ounce. While these high prices seem to have a temporary impact on the jewellery demand, the gold investment demand on the other hand, continues to drive the market, as record domestic prices and inflows into gold ETFs, digital gold, coins and bars reiterate gold’s appeal.   The shine will get brighter as festivals like Gudi Padwa, Ugadi, Chaitra Navratri, and Ramzan Eid are approaching, and th...

  Much needed a clearer definition to avoid buyer confusion   The World Jewellery Confederation (CIBJO) is recommending a new definition of recycled gold to be used in the jewellery and watch sectors, so as to provide greater clarity and consistency both within the industry and marketplace. CIBJO will henceforth include the definition in the guidance documents it produces.   The definition, which covers recycled materials recovered during manufacturing and fabrication processes before being sold to consumers, and also gold recovered from materials after they have been sold to consumers, was developed through extensive discussions among industry experts. It is designed to set stricter criteria for secondary and circular gold supplies, and aims to improve the identification of inputs and outputs in the gold refining and fabrication processes, as well promoting transparent and responsible sourcing.   The full text of the new definition follows:    CIBJO acknow...

  Gold crossed in intra-day trading on Friday, 14 March   “Gold crossed US$3,000/oz in intra-day trading during the early hours of Friday 14 March and then again on Monday 17 March. While the LBMA Gold Price PM hasn’t officially crossed the mark, setting at US$2,996.50/oz on Monday, it has nonetheless grabbed the attention of investors and media outlets around the world, triggering a myriad of questions about its significance” Taylor Burnette, Research Lead, Americas-World Gold Council (WGC).   According to Dr. Renisha Chainani, Head - Research at Augmont as said in the Augmont Bullion Daily Report for March 18, “Gold continues its winning streak! Gold maintains its winning streak above $3025 (~Rs 88500) as Trump's tariffs are projected to exacerbate inflation and economic turmoil. Trump said he would hold Iran accountable for any strikes carried out by the Houthi group it supports in Yemen, as his administration escalated the largest US military operation in the Middle ...

  The big question now is whether gold can hold above $3,000    Uncertainty appears to be the undertone across markets. Concerns over tariffs, and the wide-ranging impact they could have on global growth, continue to cast a cloud and question US exceptionalism. This has added to already rising geopolitical risk. Recent events have highlighted the need for greater military spending, which will likely result in even higher deficits.   There are several factors that could reinstate the thorny problem of higher inflation, especially at a time when deteriorating economic conditions may necessitate interest rates staying low. The US economy is likely in ‘stagflation’ and consumers appear to see it that way.   Historically, each of these drivers has individually been positive for gold. A move up in the GPR (Geopolitical Risk Index) index of 100 points is typically linked to a 2.5% increase in the price of gold , all else equal. Similarly, a rise in 10-year ...

  Global gold trading volumes rose 20% in January 2025   In the Gold ETF Commentary, January in review, World Gold Council (WGC) reported, Global physically backed gold ETFs  saw net inflows during the first month of 2025, adding US$3bn in January. The most notable shift comes from Europe: while it led global outflows during most of 2024, it is now dominating inflows.  Despite gold’s strong performance, North American investors remained net sellers of gold ETFs in the month, while Asia and the other regions saw limited inflows. By the end of January, the total asset under management (AUM) reached US$294bn, another month-end record, and collective holdings continued to rebound (+34t).    In the highlights WGC report, 1: Global gold ETFs kicked off 2025 with positive flows, led by Europe, while North America saw outflows. 2: Following the second consecutive monthly inflow and supported by a higher gold price, global gold ETFs’ total AUM rose to US$294bn a...

Key industry players & Budget 2025-26   Key industry players have shared their view on the recently pronounced Union Budget 2025-26. Let’s peep-up into the expressions! Vaishali Banerjee, Managing Director, India at Platinum Guild International: "We sincerely thank the Honourable Finance Minister for presenting a robust budget.  The reduction in the customs duty from 25% to 6.4% on platinum findings and the reduction in the tariff rate from 25% to 20% on finished jewellery— is a significant step.  We are confident that these measures will stimulate renewed demand and drive growth for platinum in the coming years.” Sachin Jain, Regional CEO, India, World Gold Council: "The fiscal budget announced by Finance Minister Nirmala Sitharaman is advantageous for the gold industry as it increases disposable income, encourages spending, and promotes economic growth across various income levels.   The omission of TCS above certain limits reduces compliance burdens and ...

Gold has a key role as a strategic long-term investment   Recently, Gold as a strategic asset 2025, edition published by World Gold Council (WGC). The report spark all those portfolio player’s by asking, what makes gold a strategic asset?   Gold has a key role as a strategic long-term investment and as a mainstay allocation in a well-diversified portfolio. Investors have been able to recognise much of gold’s value over time by maintaining a long-term allocation and taking advantage of its safe-haven status during periods of economic uncertainty. Gold is a highly liquid asset, which is no one’s liability, carries no credit risk, and is scarce, historically preserving its value over time. It also benefits from diverse sources of demand: as an investment, a reserve asset, gold jewellery, and a technology component.    These attributes mean gold can enhance a portfolio in three key ways; 1: Delivering long-term returns, 2: Improving diversification & 3: Provi...

  Structural uptrends may offer attractive entry points in 2025   Over the past two years, a breakdown in the relationship between gold and real interest rates has been on display. “We have in the past attributed the phenomenon largely to emerging market central bank buying and geopolitical risk premia. But perhaps bond uncertainty has also played a role, said World Gold Council (WGC) in their Gold Market Commentary for the month of December 2024.   Data suggests that when interest rate uncertainty – as measures by the MOVE index - is high, yield trajectory appears to exert less of a drag on gold returns than when it is low. It also looks like this is a statistically significant difference, if we regress gold returns on a real yield component with an interaction dummy for when the MOVE index is above 100 (it has recently risen to 99).  The normal sensitivity is more than halved when bond uncertainty is high, even accounting for moves in the US dollar index. ...