📈 November 2024: India’s Gold Market in Focus
India’s November gold market update brought a mix of trends and surprises. Here’s what’s buzzing:
🛍️ Jewellery Demand Takes a Hit
- After the Diwali high, jewellery demand slowed despite the wedding season.
- Price volatility has consumers holding back.
- The inauspicious buying period (mid-December to mid-January) may keep jewellery sales muted in the short term.
💰 Investment Shines Bright
- Gold bars and coins saw strong sales as investors turned to safe havens.
- Indian Gold ETFs recorded solid inflows:
- November inflows reached ₹12.6 billion (~$149 million), surpassing 2024’s monthly average.
- Year-to-date, ETFs added 14.5 tonnes of gold, with assets under management growing 60% compared to last year.
- Three new gold ETFs launched in 2024, reflecting rising investor interest.
🏦 RBI Boosts Gold Reserves
- The Reserve Bank of India (RBI) ramped up gold holdings, reaching 876 tonnes—a 9% year-on-year rise.
- RBI added 72.6 tonnes in 2024, outpacing 2023’s additions by over 4x.
- Gold now forms 10.2% of the RBI’s forex reserves, up from 7.8% a year ago.
📉 Price Volatility Hits Momentum
- Gold prices dropped 4% globally from October peaks, landing at $2,670/oz by mid-December.
- Domestic prices mirrored this, slipping 3%, with rates fluctuating between ₹73,477 and ₹78,669/10g.
- Factors influencing this dip:
- Stronger US dollar
- Rising US Treasury yields
- Eased inflation concerns post-US elections
🚢 Gold Imports Surge
- November imports skyrocketed to $14.8 billion, doubling the previous month and quadrupling year-on-year.
- Estimated import volumes of 170–180 tonnes marked a significant jump from October’s 86 tonnes.
- Total imports for 2024 exceeded 800 tonnes, a 48% increase over the previous year.
🧐 What Lies Ahead?
- Investment demand will likely remain resilient despite upcoming seasonal buying challenges.
- Persistent geopolitical risks could continue to support gold as a safe haven.
- With gold still delivering strong year-to-date returns (22% in INR, 29% in USD), its appeal as a strategic asset remains robust.
Gold continues to shine as both an investment haven and a geopolitical hedge in 2024. Let’s see how the trends evolve as the year closes! 🌟