India's gold imports have hit a 3.5-year high in preparation for strong seasonal demand, according to Kitco - in its latest precious metals update, analysts at Heraeus said.
“Strong consumer demand in India and restocking by the metals industry ahead of Diwali saw the country’s gold imports surge to a more than three-year high of 125 tonnes in August. This marked a 58% increase year-on-year and a 212% increase month-on-month. Imports were supported by a cut in import duties on the precious metal in July.”
According to Heraeus, some Indian consumers delayed buying jewelry and gold bars in the first half of the year because of rising gold prices. However, they may have seen the recent tax cut as an opportunity to buy.
India remains the second-largest gold consumer and is expected to account for 761 tonnes of consumer demand for the yellow metal by 2023, analysts noted. “Based on year-to-date import figures, gold demand in India could grow by around 10% this year,” the analysts said.
A recent survey by the World Gold Council (WGC) found that global central banks, especially those in emerging markets and Asia, continue to view gold as an important source of their reserves and indicate their intention to continue increasing their long-term allocation to gold.
According to WGC data, in the second quarter of 2024, total global gold demand increased by 4% year-on-year to 1,258 tons. Total gold demand increased due to vibrant over-the-counter (OTC) transactions, increasing by 53% to 329 tons year-on-year.
Central bank gold demand totaled 183 tonnes in the second quarter of 2024, down 39% from the first quarter but still up 6% from the same period in 2023. Gold purchases in the first half of the year totaled 483 tonnes, up 5% from the record 460 tonnes recorded in the first half of 2023.
Update domestic gold price
Early this morning, DOJI Group listed the price of SJC gold bars at 82 - 84 million VND/tael (buy - sell). Bao Tin Minh Chau listed the price of SJC gold at 82 - 84 million VND/tael (buy - sell).
The price of 9999 Hung Thinh Vuong round gold rings at DOJI is listed at 82.75-83.60 million VND/tael (buy - sell). Bao Tin Minh Chau listed the price of smooth round gold rings at 82.68-83.58 million VND/tael.