MUMBAI: India’s gold demand fell 3% in 2023 to 747.5 tonnes, which is the bottom since 2020, as hovering costs diminished the demand for jewelry, in line with a World Gold Council report launched on Wednesday.
Indian gold consumption within the October-December quarter fell 4% to 266.2 tons, as a drop in jewelry demand eclipsed greater gross sales of cash and bars for funding functions, the WGC stated.
The January-March quarter, demand is predicted to remain low on account of fewer auspicious marriage ceremony days, the WGC stated.
The Authorities has additionally imposed excessive Customs obligation on gold to limit imports because it results in an outgo of treasured international trade which is required for important imports reminiscent of crude oil.
Switzerland and the United Arab Emirates are the main gold suppliers to India.
The report additionally states that the worldwide jewelry market proved to be remarkably resilient amidst record-high costs as demand inched up by 3 tonnes year-on-year. China performed an necessary function, recording a 17% improve in demand for gold, offsetting a 9% lower in India.
Mine manufacturing of gold was comparatively flat in 2023, up 1%. Recycling elevated by 9%, which was decrease than anticipated given the excessive gold worth and drove complete provide up 3%, the report added.