Data from the World Gold Council (WGC) showed that the country’s demand for gold fell by 3% in 2022, with a significant 20% decline in the fourth quarter. Due mostly to an increase in price, demand for the yellow metal fell to 276 tonnes in the December quarter from 344 tonnes in the corresponding time last year. However, the World Gold Council’s Regional CEO for India, Somasundaram PR, claimed that a strong fourth quarter had increased Indian gold demand once again, underscoring the significance of post-harvest incomes and moods.
Demand was unexpectedly resilient, he added, despite a rather slow start to the year, a decline in consumer confidence, a rise in tax, and a dramatic increase in pricing in the middle of the season. Despite a record-high gold price on the domestic market, he claimed that jewelry demand was only down 2% from the previous year. According to the figures provided on Tuesday, demand for investments fell 29% to 56 tonnes (79 tonnes), while demand for jewelry was down 17% to 220 tonnes (265 tonnes).
In terms of value, demand for gold fell 15% to 1.25 lakh crore ($1.49 lakh crore), jewelry demand down 13% to 1 lakh crore ($1.15 lakh crore), and investment fell 25% to 25,730 crores ($34,130 crore). The amount of gold imported fell to 165 tonnes (from 208 tonnes), but the amount recycled rose to 30 tonnes (20 tonnes). The demand for gold fell by 3% in 2022 to 774 tonnes (797 tonnes), while the demand for jewelry and investments fell to 600 tonnes (611 tonnes) and 174 tonnes (186 tonnes), respectively.
Demand for jewelry climbed by 4% to 2.73 lakh crore ($2.61 lakh crore), while demand for investments decreased by 1% to 78,860 crore ($79,720 crore). With the steep rise in prices, gold imports fell 27% to 673 tonnes (from 925 tonnes), while recycling rose 30% to 98 tonnes (from 75 tonnes). The Reserve Bank of India continued to buy gold, adding 33.5 tonnes last year, which is 57 percent less than the 77.5 tonnes it bought in 2021. According to Somasundaram, “We think that this year’s gold demand will range between 800 and 850 tonnes, depending on a few short-term circumstances, most notably the monsoon and the near-term rebound of rural demand.”