Gold demand rises 37% to 140 tonne in Jan-March 2021
During the period, total demand for gold was 140 tonne compared to 102 tonne during the same period of 2020 (Q1 2020). According to data released by World Gold Council on Thursday, while jewellery demand during Q1 2021 rose by 39%, investment demand, which includes bars, biscuits, e-gold and ETFs, rose 34%.
The quarter also witnessed a deluge of gold imports into India at 301 tonne, a jump of more than 3.5 times over Q1 2020 figure of 83.1 tonne — as jewellers were expecting the surge in demand to continue into Q2 2021. However, the recent lockdowns in several parts of the country could dampen the same for a few weeks, said Somasundaram P R, MD (India), WGC.
“We are expecting strong demand for gold in the second half of the year,” he said. “Forecast of a good monsoon by the IMD (Indian Meteorological Department), the current softness in gold prices and the revival in the economy are expected to help demand for gold to rise,” he said.