Gold demand jumps 10% in Q2, but the festive season may not be that rosy

The seasonal spike in demand could be moderate this Dhanteras-Diwali due to factors like a lack of liquidity, rising gold prices and impending elections

India’s gold demand jumped by 10 per cent in the July–September quarter due to a dip in gold prices in the beginning of the period and forecast of a normal monsoon rainfall, which raised hopes of a bumper Kharif harvest this year.

Data compiled by the apex global body, the World Gold Council (WGC) showed India’s gold demand at 183.2 tonnes for the third quarter of the current calendar year compared to 165.8 tonnes for the corresponding period last year.

Both jewellery and investment demand spurred as consumers rushed to book their pie to take advantage of