India’s Gold demand expected to rise further in 2022: World Gold Council

India's Gold demand expected to rise further in 2022: World Gold Council
Representative Image sourced from Unsplash

According to World Gold Council (WGC), India’s gold consumption is expected to record further increase in 2022.

Notably, this follows a big jump of 79 per cent in 2021. As pent-up demand and improving consumer confidence are likely to boost retail jewellery sales, WGC said.

Gold consumption in 2022 will likely be 800-850 tonnes as compared to 797.3 tonnes last year. This remains highest in six years, Somasundaram PR, regional chief executive officer of WGC’s Indian operations told, as per Reuters.

Indian demand has averaged 769.7 tonnes over the last ten years. India is the second-biggest gold consumer in the world. A rise in consumption here, would in turn help global prices but could also widen India’s trade deficit putting pressure on the ailing rupee.

Due to the muted wedding celebrations in Covid times mean more savings; now that money would flow into gold.

Gold remains an indispensable item for brides in India. It forms main part of the bride’s trousseau in India.

In the December quarter, gold consumption had nearly doubled from a year ago to a record 343.9 tonnes owing to Dussehra and Diwali. The WGC said in a report published this Friday.

When it comes to local gold prices, these were trading around 48,000 rupees per 10 grams this week after hitting a record high of 56,191 rupees in August 2020.

Demand for coins and bars which is called as investment demand also surged 43 per cent in 2022 to 186.5 tonnes, WGC report said.

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