Mumbai: The World Gold Council (WGC) published a report regarding the gold purchases around the world in the three months, from January to March. There was a decline of 23% in the global gold demand in these three months. In the same period, Indians made heavy purchases of gold, and the demand recorded an increase of 37% over the corresponding period last year. During the three months, from January to March, Indians purchased a whopping 140 tonnes of gold.
As per the statistics published by the WGC regarding the gold purchases around the world, for the period January to March, the gold demand was 815.7 tonnes in the current year. As compared to the same period in 2020, this demand is 23% lower. In 2020, the gold market was 1,059 tonnes in the first three months. As per the WGC report, the decline in the demand during the Coronavirus pandemic times and the reduction in the gold purchase by the central banks of countries caused this decline. Last year, central banks of various countries had bought 124.1 tonnes of gold between January and March. Whereas, this year the purchase has been only 95 tonnes.
During the Corona period, the gold demand had declined. The need seems to be increasing steadily. But the market has still not reached the last year’s levels. Instead, many investors have withdrawn their investments from the gold ETFs. The main reason for this was the major decline in gold prices during that period. The gold rates slid by nearly 4.21% to USD 1795 per ounce. Last year, during the same period, the gold rates were at USD 1874 per ounce.
The increase in the gold demand also seems to be riding on the same reason. Indians purchased huge quantities of gold when the prices were sliding down. During the three months from January to March, Indians purchases 140 tonnes of gold. Indians made these purchases keeping in view the upcoming wedding season. Along with the retail sector, major demand was observed even from the technology sector.
Moreover, the Indian Reserve Bank has purchased 18.7 tonnes of gold. During the corresponding period last year, the reserve bank had purchased 18 tonnes of gold. The demand from January to March this year is 37% higher than the demand in the same period last year. Last year, Indians purchased 102 tonnes of gold during this period. The Indian gold purchase during the first three months of the year amounts to Rs 58.8 billion in value terms.
But as per the experts at the WGC, despite the wedding season and Akshay Tritiya, the gold purchase in the second quarter, from April to June, will be less. There are restrictions at most places because of the Corona crisis. This will affect the gold demand.
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