Updated
Updated · Kitco NEWS · Aug 19
India Gold Imports Rebound Above $4.16 Billion as July Jewelry Demand and Trading Strengthen
Updated
Updated · Kitco NEWS · Aug 19

India Gold Imports Rebound Above $4.16 Billion as July Jewelry Demand and Trading Strengthen

3 articles · Updated · Kitco NEWS · Aug 19

Summary

  • July imports jumped to US$4.16 billion from US$1.97 billion in June, with volumes estimated at 40-45 tonnes versus 20 tonnes, signaling stronger physical demand and festive-season restocking.
  • Lower, steadier prices drew buyers back into jewelry stores, with deferred purchases returning, manufacturers reporting higher orders, and jewellers rebuilding inventories ahead of seasonal demand.
  • ETF inflows stayed positive at INR15.6 billion in July despite slowing 55% month on month; holdings rose 1 tonne to 120 tonnes, and early-August inflows were estimated at INR11.79 billion.
  • MCX gold futures activity also recovered, with average daily volumes rising to 14.9 tonnes and turnover up 9% month on month to INR214 billion as hedging increased during price stabilization.
  • The World Gold Council said domestic prices remained below import parity because old-gold exchanges boosted local supply, but it expects improving demand conditions to support a stronger festive season.

Insights

With recycled gold driving up to 75% of sales, is India's famous gold rush actually masking a hidden consumer affordability crisis?
Could the explosive multi-billion dollar growth in digital gold ETFs permanently disrupt India's traditional physical gold import market?