Gold prices surge to an all-time high in India

Gold prices touched Rs 8432 per gram on Feb 5, marking a significant rise compared to February 4 rates. Reportedly, prices have soared to new heights amid a global surge in gold demand driven by central bank purchases and strong investor interest. The World Gold Council (WGC) in its latest report on Gold Demand Trends revealed that strong and sustained central bank buying and growth in investment demand pushed global gold demand, including over-the-counter purchases.

WGC further mentioned that global investment demand increased 25% year-on-year to a four-year-high 1180 tonnes, driven by a revival in gold Exchange Traded Funds (ETFs) demand in the second half of 2024. Global gold ETFs added 19 tonnes in Q4 2024, marking two consecutive quarters of inflows for the asset class. Bar and coin demand stayed largely in line with 2023 volumes at 1186 tonnes in 2024,” the report stated. While the soaring prices dampened demand in the jewellery sector across the globe, India’s gold demand remained resilient in 2024, dropping by only 2% compared to 2023, whereas China saw a 24% decline.