Q2 2022 sees 54% increase in gold activity in India
Gold demand in India saw a 43% increase to 170.7 tonnes in the second quarter of this year. This was 119.6 tons the year before in the same quarter. The reasons attributed to this are wedding season and festival shopping. Another reason for this was attributed to the lower volume recorded in the second quarter of 2021, due to the pandemic.
The demand for gold in terms of value for the second quarter reached Rs. 79,270 crores registering an increase of 54%, against the rupees. 51,540 crore in the prior year quarter. During this second quarter of 2022, there was a 60% increase in the sold value of gold jewelry, reaching Rs. 2,65,140 crore, compared to Rs. 40,610 crore, in the same quarter the last year.
According to industry experts, equity market volatility is one of the reasons that led to a sharp increase in gold mining activity in India in the second quarter. Demand saw 6% growth in the first half of 2022, with concerns over the sale in the second year. Due to high import duties and the development of the INR-USD exchange rate, the buying pattern is questionable.
There have been structural reforms in the market like forex trading and mandatory hallmarking in the Indian market. With the planned launch of the India International Bullion Exchange, it will be interesting to note its effect on the gold market.