In our country, women give the highest priority to gold. No matter how high the gold prices are, the purchases will continue. Gold shops are thronged with women for weddings and other auspicious functions. But recently after the central budget, gold prices have come down heavily. The demand for gold is likely to increase in the coming days. Let’s find out the reasons for this.
The World Gold Council has estimated that gold consumption in India will increase this year compared to last year. According to the World Gold Council, demand is expected to increase due to good monsoons and reduced duty on gold. India is expected to consume 850 tonnes of gold this year and 750 tonnes in 2023, according to the World Gold Council (WGC). This means that the country can buy about 13.5 percent more gold this year compared to last year. Jewelery will play the biggest role in driving demand for gold in India this year.
The WGC has forecast gold demand in India to rise 10 per cent year-on-year to 230 tonnes in the July-September quarter. This trend in gold demand is expected to continue in the fourth quarter i.e. October-December as well. During this time there are festivals like Diwali and Dhanteras. Gold is sold more here. However, gold demand fell by 5 percent to 158.1 tonnes in the April-June quarter this year.
According to the World Gold Council, higher import duty on gold led to lower demand in the last quarter. The World Gold Council said that the government has reduced the duty on gold from 15 percent to 6 percent in the general budget held on July 23, after which the demand for gold is increasing.
Increased popularity of gold ETF! WGC predicts that gold will now become a financial instrument in India as gold exchange traded funds are gaining popularity. The reason for saying this is the recent increase in investments in gold exchange traded funds. Currently only 50 tonnes of gold is stored in India through ETFs. But its capacity is also expected to increase in the coming years. According to the World Gold Council, in the first week of November, there will be volatility in the prices of gold as the presidential election is going to be held in the United States. India is completely dependent on imports to meet its gold requirements. Any change in international prices will affect the price of gold in India.
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