World Gold Council increases India’s gold consumption forecast to 850 tonnes for 2024

In contrast, gold demand in the April-June quarter declined by 5% year-on-year to 158.1 tonnes, primarily due to high import duties 

Mumbai: The World Gold Council (WGC) has revised its forecast for India’s gold consumption in 2024, raising the projection to 850 tonnes from an earlier estimate of 750 tonnes. This upward revision is attributed to a combination of a favourable monsoon and a reduction in gold import duties, according to John Reade, Market Strategist for Europe and Asia at the WGC. 

Reade emphasised that the demand for gold in India will be significantly driven by the jewellery sector this year. “Jewellery will drive this higher demand for gold in India,” he stated. 

For the July-September quarter, the WGC anticipates gold demand in India will reach 230 tonnes, marking a 10% increase year-on-year. This positive trend is expected to extend into the fourth quarter, particularly during the Diwali-Dhanteras festival period. 

In contrast, gold demand in the April-June quarter declined by 5% year-on-year to 158.1 tonnes, primarily due to high import duties. However, the recent reduction in import duties from 15% to 6% in the Union Budget, announced on July 23, has led to a swift rebound in demand. 
 
Reade highlighted that historically, an environment of falling interest rates tends to benefit gold, particularly if it is accompanied by a weakening US dollar. 
 
Gold is typically priced in dollars, so when the dollar weakens, gold becomes cheaper in other currencies, which can increase global demand and drive-up prices. 
 
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