Gold demand in the December quarter hit a new high of 344 tonnes against 186 tonnes logged in the same period last year, buoyed by pent up demand and stable prices. In value terms, it jumped 80 per cent to Rs 1.49 lakh crore (₹82,790 crore).

Jewellery demand was up 93 per cent at 265 tonnes (137.3 tonnes) in the quarter under review. The value of jewellery demand was up 88 per cent at ₹1.15 lakh crore (₹61,060 crore).

On a lower base, investments in gold increased 61 per cent to 79 tonnes (48.9 tonnes) valued at ₹34,130 crore ( ₹21,730 crore) on expectations of prices moving up sharply.

On the back of rising demand, gold imports increased to 208 tonnes (166 tonnes), and recycled gold jewellery was down marginally at 20 tonnes (22 tonnes).

Yearly trend

Gold jewellery demand doubled to surge past pre-pandemic levels and reached a six-year high of 611 tonnes in 2021.

Somasundaram PR, Regional CEO, India, World Gold Council, said the sharp revival in gold demand surpassed most optimistic expectations and turned out to be the best quarter in the recorded data series of WGC.

With the easing of lockdown restrictions in the second half of this year and progress of the vaccination program, economic growth altered consumer sentiment significantly, triggering spending and investments across the board during Dussehra and Dhanteras, he added.

Jeweller's sales volume breached pre-pandemic levels, with both imports and exports rising in tandem.

Many manufacturers reported stretched capacities and unusual waiting times, pointing to the robustness of recovery.

The spurt in the December quarter resulting from pent-up demand is unlikely to be repeated this year. However, the revival will set a new normal above pre-pandemic levels. He said that the next few years will be keenly watched to ascertain the effect of policy reforms to let gold evolve as a more transparent mainstream asset class.