<p>The demand for gold in India for the first quarter of 2021 was at 140 tonnes, an increase of 37 per cent as compared to the overall Q1 demand for 2020 at 102 tonnes, on the back of Covid containment till February.</p>.<p>The value of gold consumed during the first quarter was Rs 58,800, an increase of 57 per cent compared to the corresponding quarter last year valued Rs 37,580 crore, according to the World Gold Council (WGC). </p>.<p>“India’s Q1 2021 gold demand rose on the back of covid containment and positive sentiment following the start of the vaccination programme. It presented a glimpse of gold’s underlying strength of resurgence when we learn to live with a well and truly tamed covid. A combination of softening gold prices, buoying consumer sentiment following sharp pick-up in economic activity and return of social activities like weddings supported a 39 per cent growth y-o-y in gold jewellery demand at 102.5 tonnes," Somasundaram PR, Managing Director, India, World Gold Council said.</p>.<p>The average gold price of Rs 47,131/10gm was 14 per cent higher y-o-y but 6 per cent lower q-o-q and significantly, 16 per cent lower than the August 2020 peak of Rs 56,000/10gm. </p>.<p>The slide in prices below Rs 50K/10gm removed a psychological barrier for the consumers and spurred bargain buying and wedding-related accumulation, releasing pent-up demand, he said.</p>.<p>Total jewellery demand in India for Q1 2021 was up by 39 per cent at 102.5 tonnes as compared to Q1 2020 (73.9 tonnes).</p>.<p>The value of jewellery demand was Rs 43,100 crore, a rise of 58 per cent from Q1 2020 (Rs 27,230 crore). The total Investment demand for Q1 2021 increased by 34 per cent at 37.5 tonnes in comparison with Q1 2020 (28.1 tonnes).</p>.<p>In value terms, gold investment demand was Rs 15,780 crore, up by 53 per cent from Q1 2020 (Rs. 10,350 crore). Gold recycled in India dropped 20 per cent from 18.5 tonnes in Q1 2020 to 14.8 tonnes this year.</p>.<p>Net bullion imports in India in Q1 2021 was 301 tonnes, a 262 per cent increase over Q1 2020.</p>.<p>Indian retail gold investment demand also improved for a third consecutive quarter. Bar and coin demand grew 34 per cent y-o-y to 37.5 tonnes — the strongest first quarter in India since 2015. Investment benefited from factors similar to those supporting jewellery demand: a lower domestic gold price coupled with improving economic indicators. A reduction in customs duty on gold, together with an appreciating rupee throughout much of the quarter, helped lower Rs prices and presented significant buying opportunities for retail investors, the WGC said.</p>
<p>The demand for gold in India for the first quarter of 2021 was at 140 tonnes, an increase of 37 per cent as compared to the overall Q1 demand for 2020 at 102 tonnes, on the back of Covid containment till February.</p>.<p>The value of gold consumed during the first quarter was Rs 58,800, an increase of 57 per cent compared to the corresponding quarter last year valued Rs 37,580 crore, according to the World Gold Council (WGC). </p>.<p>“India’s Q1 2021 gold demand rose on the back of covid containment and positive sentiment following the start of the vaccination programme. It presented a glimpse of gold’s underlying strength of resurgence when we learn to live with a well and truly tamed covid. A combination of softening gold prices, buoying consumer sentiment following sharp pick-up in economic activity and return of social activities like weddings supported a 39 per cent growth y-o-y in gold jewellery demand at 102.5 tonnes," Somasundaram PR, Managing Director, India, World Gold Council said.</p>.<p>The average gold price of Rs 47,131/10gm was 14 per cent higher y-o-y but 6 per cent lower q-o-q and significantly, 16 per cent lower than the August 2020 peak of Rs 56,000/10gm. </p>.<p>The slide in prices below Rs 50K/10gm removed a psychological barrier for the consumers and spurred bargain buying and wedding-related accumulation, releasing pent-up demand, he said.</p>.<p>Total jewellery demand in India for Q1 2021 was up by 39 per cent at 102.5 tonnes as compared to Q1 2020 (73.9 tonnes).</p>.<p>The value of jewellery demand was Rs 43,100 crore, a rise of 58 per cent from Q1 2020 (Rs 27,230 crore). The total Investment demand for Q1 2021 increased by 34 per cent at 37.5 tonnes in comparison with Q1 2020 (28.1 tonnes).</p>.<p>In value terms, gold investment demand was Rs 15,780 crore, up by 53 per cent from Q1 2020 (Rs. 10,350 crore). Gold recycled in India dropped 20 per cent from 18.5 tonnes in Q1 2020 to 14.8 tonnes this year.</p>.<p>Net bullion imports in India in Q1 2021 was 301 tonnes, a 262 per cent increase over Q1 2020.</p>.<p>Indian retail gold investment demand also improved for a third consecutive quarter. Bar and coin demand grew 34 per cent y-o-y to 37.5 tonnes — the strongest first quarter in India since 2015. Investment benefited from factors similar to those supporting jewellery demand: a lower domestic gold price coupled with improving economic indicators. A reduction in customs duty on gold, together with an appreciating rupee throughout much of the quarter, helped lower Rs prices and presented significant buying opportunities for retail investors, the WGC said.</p>