India’s Gold Market Update: October 2024
Here’s everything you need to know about India’s glittering gold market this October! Let’s dive into the key highlights, trends, and what’s ahead for this precious metal in the heart of one of its biggest global markets.
Key Highlights from October 2024
🪔 Festive Vibes Drive Demand
Diwali brought a sparkle to the gold market! Despite record-high prices, gold demand soared, fueled by its investment appeal and festive buying traditions.📈 Gold ETFs Hit New Highs
Indian gold ETFs saw their largest-ever monthly inflows, smashing records and showing strong investor confidence.🏦 RBI’s Golden Addition
The Reserve Bank of India purchased 78 tons of gold this year—its second-highest annual purchase ever.🚢 Gold Imports Surge
Seasonal demand pushed October’s gold imports to $7.13 billion, up from $4.39 billion in September.
Festive Season Trends
✨ Diwali Magic Fuels Sales
Shoppers didn’t shy away from buying gold jewellery and coins, with stores reporting heavy footfall and online platforms buzzing with activity.- Jewellers offered promotional deals and lighter designs to woo buyers.
- Token purchases spanned all demographics, cementing gold’s cultural and economic value.
💎 Gold Prices at a Premium
Domestic gold prices traded slightly above international rates during peak festive demand—a testament to the market’s bullish sentiment.
Gold as an Investment Darling
📊 ETFs Shine Bright
- October inflows into gold ETFs hit INR 19.6 billion (~US$233 million), setting a record.
- Total assets under management for Indian gold ETFs grew to INR 445 billion (~US$5.3 billion), a 70% year-over-year jump.
🌟 Market Volatility Boosts Appeal
With equity markets shaky, gold remains the go-to safe haven, delivering a year-to-date return of 17% in INR terms.
RBI’s Bold Gold Moves
🏦 Reserve Boost
- October alone saw 28 tons of gold added to the RBI’s reserves, taking total purchases this year to 78 tons.
- Gold now makes up 10% of India’s foreign exchange reserves—the highest share since 1999.
📍 Keeping it Local
- 60% of the RBI’s gold is now held domestically, a strategic shift away from foreign storage.
Imports Reflect Seasonal Trends
🚚 October’s Big Import Numbers
- Gold imports hit 90–92 tons, significantly higher than September’s 59 tons.
- Year-to-date, gold imports rose 21%, with a total of 635 tons valued at $44 billion.
🛃 Impact of Duty Cuts
Lower import duties introduced in July helped reduce smuggling, shifting focus to official imports.
Looking Ahead
🔮 Wedding Season Could Spark More Demand
With the wedding season (November–March) approaching, gold demand might see another upswing.📈 Price Stabilization on the Horizon
A correction or stabilization in prices could further fuel buying interest.🌍 Global Factors at Play
Geopolitical uncertainty and volatile equity markets will likely sustain gold’s investment appeal in the coming months.
Final Thoughts
India’s gold market continues to thrive, powered by its cultural roots, evolving investment landscape, and strategic policies. Whether you’re an investor, trader, or simply a gold enthusiast, keep your eyes on this shining star—it’s a market like no other!
Let us know: Are you team gold for investment or tradition? Drop your thoughts below! 🪙✨