29 December 2023
India’s gold market sees subdued demand in Q4 due to high prices, influenced by geopolitical risks, rate cut expectations, and a strong USD. Despite the RBI halting gold purchases and soft domestic demand causing a local discount, gold ETFs attracted sustained inflows, with November seeing US$47 million. High prices are expected to dampen physical gold demand, except for bridal jewelry. Investment demand may rise due to global uncertainties and positive domestic economic growth. The LBMA Gold Price PM rose 11% since October, mirrored by Indian gold prices, while other currencies saw lesser increases due to their strength against the USD.