Economy

Drop in price boosts demand for gold in March quarter

Our Bureau Mumbai | Updated on May 02, 2019 Published on May 02, 2019

Representative image   -  Getty Images/iStockphoto

Purchases for weddings, festival too play a crucial role

Gold demand increased by 5 per cent in the January-March quarter to 159 tonnes, against 151 tonnes in the same period last year, largely due to drop in prices.

In value terms, gold demand was up 13 per cent at ₹47,010 crore (₹41,680 crore), according to Gold Demand Trend report released by the World Gold Council on Thursday.

Jewellery sector purchased 125 tonnes of gold worth ₹37,070 crore (against 119 tonnes valued at ₹32,790 crore).

Reserve Bank of India purchased 8 tonnes of gold in the March quarter taking its total reserves to 608 tonnes, though it is not known whether it bought gold to back sale of 20 tonnes through the sovereign gold bond scheme. Somasundaram PR, Managing Director (India), World Gold Council, said the increase in auspicious wedding days during the quarter was crucial for the rise in gold demand.

The stronger rupee also benefited investors, with demand for gold bars and coins rising by 4 per cent to 34 tonnes in the quarter.

Digital platforms

Despite a nascent trend, digital platforms for buying gold continue to become popular, as internet investment gold providers forge effective market partnerships with UPI platforms and offer investors the option of purchasing pure gold for as little as one rupee on their smartphone, he said.

“We are likely to see accelerated growth through digital platform as a regulatory framework evolves with jewellers’ tie-ups growing. This will enable the seamless transfer of digital gold holdings to acquire jewellery,” he said.

The demand in the June quarter is likely grow with the ensuing wedding season, Akshaya Tritiya festival and rising crop prices. The forecast of normal monsoon this year augurs well for the rural economy and gold. The gold demand for this year is expected to be about 750-850 tonnes, he said.

Published on May 02, 2019

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.