icon bookmark-bicon bookmarkicon cameraicon checkicon chevron downicon chevron lefticon chevron righticon chevron upicon closeicon v-compressicon downloadicon editicon v-expandicon fbicon fileicon filtericon flag ruicon full chevron downicon full chevron lefticon full chevron righticon full chevron upicon gpicon insicon mailicon moveicon-musicicon mutedicon nomutedicon okicon v-pauseicon v-playicon searchicon shareicon sign inicon sign upicon stepbackicon stepforicon swipe downicon tagicon tagsicon tgicon trashicon twicon vkicon yticon wticon fm

Indian’s appetite for gold grows as price for metal hangs near multi-month low

Indian’s appetite for gold grows as price for metal hangs near multi-month low
The wedding season and subdued gold prices have boosted demand for the precious metal in India, signaling possible recovery for the market which saw a massive 30-percent drop in the previous quarter.

Indian jewelers have been rushing to replenish stocks after witnessing good demand during the Diwali festival, that took place in mid-November this year, Reuters reported, citing a Mumbai-based dealer with a bullion importing bank.  

The positive trend might have also been driven by the deferred demand effect. Another bullion dealer told Reuters that customers were making purchases for weddings after postponing them in the last few months as the country imposed strict lockdowns to contain Covid-19. 

Also on rt.com Indian economy roars back to life following coronavirus blow

While gold demand usually increases during the Diwali festival and a busy wedding season, consumers’ interest was also driven by current attractive prices.

Bullion futures suffered the biggest weekly losses for the commodity since late September, with February contracts falling from nearly $1,850 per ounce on Monday to close at $1,788.10 on Friday. Spot gold also finished lower despite a drop in the US dollar. As the yellow metal has been traditionally considered a safe haven asset, the greenback’s weakness usually boosted bullion prices. 

Also on rt.com Gold demand plunges to 11-year low – World Gold Council

“We have seen an increase in activity this week primarily because of the significant drop in metal prices. So, we have seen drive towards retail interest,” product manager at LPM Group Ltd., Keanan Brackenridge, was quoted as saying by Reuters. He added than some people opted to sell gold and take profits, fearing that the price could fall further.

Jewelry demand in India dwindled by half in the July-September quarter compared to the same period last year, while overall gold demand tumbled by a third, according to the World Gold Council. Meanwhile, global demand for the precious metal dropped by 19 percent to 892 tonnes, hitting the lowest quarterly total in more than a decade.

For more stories on economy & finance visit RT's business section

Dear readers and commenters,

We have implemented a new engine for our comment section. We hope the transition goes smoothly for all of you. Unfortunately, the comments made before the change have been lost due to a technical problem. We are working on restoring them, and hoping to see you fill up the comment section with new ones. You should still be able to log in to comment using your social-media profiles, but if you signed up under an RT profile before, you are invited to create a new profile with the new commenting system.

Sorry for the inconvenience, and looking forward to your future comments,

RT Team.