India’s gold demand rises 9% in 2017 on jewellery purchases, says WGC
India’s gold demand jumped 9 per cent in 2017, thanks to robust consumer sentiment in the October-December quarter (Q3FY18) and appreciation in the rupee. Data compiled by the World Gold Council (WGC) showed the country’s demand for the metal was at 727 tonnes for 2017, compared to 666.1 tonnes in 2016. However, this was below the five-year average of 810 tonnes. In Q3FY18, gold demand was 249.3 tonnes — the highest in over two years. India’s gold demand was, in fact, higher than China’s demand for the quarter (at 243.8 tonnes) for the first time in nearly three years. A rising equity market helped sustain the high demand. “In October-December 2017, India’s gold demand was up 2 per cent. Jewellery demand reached the highest for the quarter in our 17-year series.
The increase in gold demand was driven by low prices coinciding with Dhanteras, a positive economic condition, and improved consumer sentiment, particularly in rural areas, as the effect of demonetisation wore off,” said Somasundaram P R, managing director, WGC.