New Delhi/IBNS: Indians bought a substantial 248.3 tonnes of gold between July and September 2024, which is 51 percent more than the 165 tonnes purchased in China during the same period, according to the World Gold Council’s latest data.

Most of this demand in India was for gold in the form of coins and bars.

India’s gold demand saw an 18 percent year-on-year (YoY) increase for the July-September period.

This surge is largely attributed to the reduction in the import duty on gold from 15 percent to 6 percent, announced by Finance Minister Nirmala Sitharaman during her Union Budget 2024-25 speech on July 23.

The demand was also fueled by “revenge buying,” a term describing a sudden increase in purchasing after a period of limited access.

“India’s gold demand remains solid in Q4 due to Dhanteras and wedding demand,” Sachin Jain, regional CEO (India) of the World Gold Council, was quoted as saying in an Economic Times report.

He added, “Although with the continued rise in the gold price offsetting the impact of the duty cut, we may see an increased trend for investors to wait for price corrections as opportunities to add to their holdings.”

In this quarter, Indian buyers purchased 77 tonnes of gold coins and bars, surpassing the 62 tonnes bought in China.

Jain noted that “India’s bar and coin demand jumped to its highest in the July-September quarter since 2012. The July duty-led price correction accelerated investor optimism and bullisprice expectations, which allowed many investors to enter the market.”

Consumer demand momentum picked up sharply toward the end of July and remained strong through mid-September, with Jain highlighting a “41 percent increase in investment demand.”

Gold jewelry demand in India also rose by 10 percent to 171.6 tonnes compared to the same quarter the previous year.

This heightened demand occurred despite gold prices averaging Rs 66,614 per 10 grams in July-September 2024, a rise from Rs 51,259.80 per 10 grams in the same period last year.

Gold’s appeal continues amid a volatile equity market due to the 2024 US Presidential election and escalating tensions in West Asia.

Looking ahead, Jain told ET, “We expect full-year gold demand to be in the range of 700-750 tonnes.”

Notably, India’s gold demand has surpassed China’s twice in the past eight quarters, in the October-December quarters of 2022 and 2023.