For India, the demand for gold is expected to rise as high as 136.6 tons in the January-March quarter, climbing 8% from the same period last year, World Gold Council data shows.
Jewellery demand in India grew a modest 4% to 95.5 tons, up from 91.9 tons, while investment demand, including bars, coins and others, spiked 19% to 41.1 tons from last year's 34.4 tonnes.
Valued in rupees, India's demand for gold surged 20% to Rs 75,470 crore in the quarter from the corresponding period a year ago.
The demand has been driven up largely by investors seeking refuge in gold amid rising geopolitical tension, notably in the Middle East and the Russia-Ukraine conflict.
RBI is also a key driver of the increased demand after increasing its gold reserves to 19 metric tonnes in the January-March quarter, raising its net purchases from the previous year's 16 metric tonnes, according to the WGC.
According to Jain, the demand for gold in India in 2024 would be in the range of 700 to 800 metric tonnes. However, the demand would lean more towards the lower end if the upward trend in prices continues.
The domestic price of gold touched an all-time high of Rs 73,958 per 10 grams earlier this month after a steady increase of more than 13% this year, as per an increase of 10% last year.
The rise in the price of gold, however, boosts the returns of investors but depresses the demand for jewellery with rising costs, Jain says.
To add, the increased purchase of gold increased the price this month with the celebration of the Gudi Padwa festival. With this, it is said that this year the gold purchases will be less during the upcoming Akshaya Tritiya festival than last year, according to the jewellers.
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