India’s Gold Market Update: Festival Surge, Price Trends, and RBI’s Record Holdings

The World Gold Council has shared the latest news about India’s gold market. After a big rush during the Akshaya Tritiya festival in May, gold demand has slowed down. However, the market is still strong with rising prices and active investors.

Gold Prices and Trends

Global gold prices have gone up by 12% this year. In mid-May, prices hit a record high but then slightly dropped to USD 2,317 per ounce in early June. In India, the high prices have made people buy less gold, especially after the festival.

Gold Demand in India

During the Akshaya Tritiya festival, many people bought gold, but demand fell afterward. Even though gold bars and coins are still popular, fewer people are buying gold jewelry. This trend might change when the next festival season starts in late Q3.

Gold ETFs and Imports

Indian gold ETFs saw positive inflows of Rs 8 billion in May, reversing April’s negative trend. The total assets under management for these ETFs reached Rs 317 billion. Gold imports also grew, with 45 tonnes imported in May, up from 43 tonnes in April.

RBI’s Gold Holdings

The Reserve Bank of India (RBI) has added 30.6 tonnes of gold to its reserves in 2024, bringing its total to a record 834.2 tonnes. This makes up 8.7% of India’s total forex reserves. The RBI is one of the top central bank buyers of gold this year, following Turkey and China.

Future Outlook

As the festival season approaches, gold demand is expected to rise again. Jewelry purchases will likely increase, and investment in gold bars and coins will stay strong. Despite the recent slowdown, India’s gold market is set for continued growth.