Gold demand in the September quarter increased 18 per cent to 248 tonnes, up from the 210 tonnes logged in the same period last year. This was due to a sharp fall in prices after the government halved the import duty.
In value terms, it jumped 54 per cent to ₹1.65 lakh crore (₹1.07 lakh crore).
Not only did the retail consumers lapped up gold, but the RBI also added the yellow metal to its reserves every month during the last quarter.
RBI bought 13 tonnes of gold as part of its reserves management, though the overall addition was marginally lower than the 18 tonnes purchased in the March and June quarters this year.
RBI’s gold reserves were up 6 per cent at 854 tonne compared to last year.
Gold jewellery demand was up 10 per cent to 172 tonnes (156 tonnes), while in value terms, it jumped 43 per cent to ₹1.14 lakh crore (₹79,830 crore).
Investments in gold increased 41 per cent to 77 tonnes (54.5 tonnes).
With gold prices touching a new high, gold recycling increased 22 per cent to 23 tonnes (19 tonnes).
Gold imports zoomed to 360 tonnes (193 tonnes).
Without import duty and GST, gold prices were, on average, up at ₹66,614 per 10 grams against ₹51,260 in Q3 of last year.
Sachin Jain, Regional CEO, India, World Gold Council, said the sharp cut in gold import duties in July sparked a revival in jewellery demand, which posted its strongest third quarter since 2015
Momentum in consumer demand picked up sharply in late July and remained strong until mid-September, he said.
“Bar and coin demand in India jumped to its highest third quarter since 2012. Investor optimism and bullish price expectations were accelerated by the July duty-led price correction, which allowed many investors to enter the market,” he said.
