MUMBAI: Pent-up demand for the yellow metal after months of lockdown in 2020 and an appreciating rupee, which saw its price stabilise in the first three months of 2021, helped demand for gold in India rise 37 per cent during the January-March quarter this year (Q1 2021).
During the period, total demand for gold was 140 tonne compared to 102 tonne during the same period of 2020 (Q1 2020). According to data released by World Gold Council on Thursday, while jewellery demand during Q1 2021 rose by 39 per cent, investment demand, which includes bars, biscuits, e-gold and ETFs, rose 34 per cent.
The quarter also witnessed a deluge of gold imports into India at 301 tonne, a jump of more than 3.5 times over Q1 2020 figure of 83.1 tonne — as jewellers were expecting the surge in demand to continue into Q2 2021. However, the recent lockdowns in several parts of the country could dampen the same for a few weeks, said Somasundaram P R, MD (India), WGC.
“We are expecting strong demand for gold in the second half of the year,” he said. “Forecast of a good monsoon by the IMD (Indian Meteorological Department), the current softness in gold prices and the revival in the economy are expected to help demand for gold to rise,” he said.