India's gold market has seen strong demand during the recent Akshaya Tritiya festival, with price moderation from record levels aiding buying and narrowing the discount between domestic and international gold prices[2][4][5]. The Reserve Bank of India (RBI) has also been a sustained buyer of gold, adding 25 tonnes to its reserves since the start of the year[2]. However, April saw gold ETF withdrawals for the first time in a year[2]. Gold imports rebounded in April despite the uptick in prices[2].
Looking ahead, demand is expected to primarily revolve around the upcoming festive period starting in August-September[2]. Jewellery demand will likely remain subdued following the recent festival, with purchases largely confined to weddings[2]. Meanwhile, bar and coin demand is likely to see continued interest[2].
Citations:
[1] https://www.gold.org/goldhub/research/jewellery-demand-and-trade-india-gold-market-series
[2] https://www.gold.org/goldhub/gold-focus/2024/05/indias-gold-market-update-festival-acts-catalyst-demand
[3] https://www.reuters.com/markets/commodities/asia-gold-indian-dealers-widen-discounts-wedding-season-demand-slows-2023-11-24/
[4] https://www.metalsmine.com/news/1285005-indias-gold-market-update-festival-acts-as-a
[5] https://www.metalsmine.com/news/1285005-indias-gold-market-update-festival-acts-as-a?reset=1