India s gold demand increased 8% to Rs 75,470 crore in March quarter, supported by strong economic environment and aggressive gold buying by RBI. Jewellery demand rose 4%, investment demand grew 19%. RBI plans to continue gold purchase.
Safe-haven demand, driven by geopolitical and economic uncertainty, investment in the OTC market, persistent central bank buying, and high demand from Asian buyers caused a rally in gold in March-April, pushing the first-quarter gold price to a record average of $2,070 per ounce.
World Gold Council (WGC) predicts subdued consumer demand for gold due to high prices, fewer weddings, and election-related restrictions. However, stability in prices before Akshaya Tritiya could boost demand. Gold s remarkable performance may encourage investment, despite challenges in the market. Domestic prices rise swiftly, impacting consumption but investment demand rises.