India's Gold Jewellery demand in India in Q3 increased approximately 60% both q-o-q and y-o-y, due to strong pent-up demand, a rebound in economic activity and lower gold prices, according to a latest update from the World Gold Council (WGC). Having been locked down for much of Q2 to combat the severe second wave of COVID-19, jewellery demand bounced back sharply in the third quarter. An acceleration in the vaccination programme and a strong end to the monsoon season further boosted consumer sentiment. Occasion-related gift buying witnessed a strong comeback in Q3 and demand was buoyant ahead of the two-week inauspicious Pitru Paksha (or Shraddh) period which fell at the end of September. Retailers anticipating strong demand during the Q4 wedding and festive season built up their inventories in preparation - and reports suggest that it has indeed got off to a brisk start. At a regional level, Northern India outperformed the South as some Southern states - notably Kerala - were impacted by higher COVID cases and restrictions on store operating times. Total jewellery demand in third quarter stood at 96.2 tonnes compared to around 61 tonnes in same quarter last year.
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