Retail demand remained weak in August!
Indian imports hit nine-month high! India’s gold market in August: Indian imports hit nine-month high but retail demand remained weak, inks Mukesh Kumar, Market Intelligence Group-World Gold Council. The domestic gold price decreased by 4.4% m-o-m but ended the month 31.1% higher y-t-d, Economic indicators sent mixed signals during August, suggesting that the Indian economy is unlikely to witness a quick recovery! Foreign Institutional Investors (FIIs) inflows into Indian equities touched an all-time high of US$6.4bn and USD/INR appreciated by 1.6% during the month. Retail gold demand weakened as consumers waited on the side lines following a sharp correction in the domestic gold price amid rising COVID-19 cases, 1: Demand for safe haven assets and strong year-to-date performance, coupled with the price correction likely seen by investors as a buying opportunity, supported gold ETF flows. Total holdings for Indian gold ETFs reached 25.7t at end of August; a net inflow of 1.8t