India keeps pace with China despite 40% gold plunge
India maintained its second-largest position globally for gold bars and coins demand, despite a 40% drop year-on-year, according to the World Gold Council's India Focus report. Bars and coins were the primary investment channel, with demand rising 9% sequentially to 55 tonnes in the September quarter. However, the high base from the previous year and easing investor buying due to rising gold prices contributed to the decline.
A 9% increase in gold import duty in May further dampened demand. Despite the overall decline, India remained the world's second-largest market for bars and coins, accounting for 21% of global demand in the quarter. Investment demand grew 12% quarter-on-quarter to around 60 tonnes, though it moderated from previous quarters. Investment accounted for 42% of net gold demand in the quarter, down from 69% in March.
Gold ETF demand surged to 5.3 tonnes, while digital gold purchases expanded 76% to 16.3 tonnes in the quarter.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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