Domestic gold demand has increased 13 per cent to 268.1 tonnes for the third quarter ended September from 238.2 tonnes in the year-ago period, aided by the softening of prices.
Demand grew 5.8 per cent in value to Rs 62,939 crore compared with Rs 59,480 crore in the third quarter of 2014, The World Gold Council (WGC) said in a report.
“A softening of prices at the beginning of the quarter led to the consumers buying in advance for the festive and wedding season ahead,” WGC managing director India, Somasundaram PR, said.
Jewellery demand rose 15 per cent to 211.1 tonnes from 184.2 tonnes a year ago.
“Although, jewellery demand continues to dominate, at 211 tonnes jewellery volume for the quarter almost equalled the previous peak of 213 tonnes in the third quarter of 2008, growth was broad-based with both jewellery and investment demand up 15 per cent and 6 per cent, respectively, signifying the continuing reliance on gold in household portfolios and trust in its long-term prospects,” Somasundaram added.
Total investment demand rose 6 per cent to 57 tonnes from 54 tonnes last year. “The gold schemes recently announced by the Prime Minister have also increased consumer choices on gold and created a more conducive environment where one can hold gold,” he said.