Friday, September 12, 2025

Latest

Low Gold Prices Lead to Increased Demand for the Precious Metal in India

As gold prices suffered some of the largest weekly losses since the end of September, largely fuelled by positive news surrounding several promising coronavirus vaccines, there may be hope for a positive recovery for the market after all. With the wedding season in India well underway, the demand for the precious metal is expected to rise – especially given the attractiveness of current bullion prices.

According to Reuters, jewellers in India have been rushing to refill their stocks after demand for gold soared during the Diwali festival that took place during the middle of November. Another bullion dealer in India had also told Reuters they had witnessed a larger-than usual increase in gold purchases for weddings, which is likely the result of pent-up demand from postponed ceremonies as a result of the pandemic.

Indeed, India’s gold demand does usually rise during the busy wedding season and the Diwali festival, but consumers have also recently taken an interest in the precious metal due to the attractiveness of current prices. Bullion futures were the subject of the largest weekly drop since late September, with February contracts dropping sharply from over $1,850 per ounce to $1,780 per ounce by the end of the week.

However, despite the recent uptake in gold buying in India, the country’s overall gold demand was still down by one-third during the July-September quarter relative to last year’s levels. The World Gold Council also noted that the global demand for the precious metal fell by 19% during the same period to 892 tonnes – the lowest quarterly total in over a decade.


Information for this briefing was found via Reuters and the World Gold Council. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Avino Q2 Earnings: Steady As She Goes

MEG Energy: Cenovus Comes In With $7.9 BILLION Offer

Orla Mining Q2 Earnings: Musselwhite Changes Everything

Recommended

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Goliath Resources Hits 18.58 g/t Gold Over 5.00 Metres At Surebet

Related News

Exploring The Abitibi For Gold – The Daily Dive feat Johnathan More of Starr Peak Exploration

Joining us this morning on the Daily Dive is that of Johnathan More, CEO of...

Tuesday, December 22, 2020, 01:30:00 PM

India Scraps Gold Deposit Program After Underwhelming Results

India has terminated a decade-old program that allowed citizens to deposit gold with banks in...

Tuesday, April 8, 2025, 02:10:00 PM

CR Capital Closes Final Tranche Of $1.0 Million Placement

CR Capital Corp (TSXV: CIT) announced after the bell last night that it has closed...

Saturday, July 25, 2020, 01:52:00 PM

Exploits Reports 66.3 G/T Silver In Sample At Katie Prospect

Exploits Discovery (CSE: NFLD) has completed an initial reconnaissance program at the firms recently acquired...

Thursday, January 7, 2021, 08:24:45 AM

iMetal Resources Begins Trenching At Flagship Gowganda West Project

iMetal Resources, Inc. (TSXV: IMR) today announced the commencement of trenching operations at its Gowganda...

Friday, July 9, 2021, 09:29:00 AM