India’s gold imports double in July as WGC flags demand recovery

India’s gold imports more than doubled in July to $4.16bn from June’s $1.97bn, the World Gold Council says, as jewellery demand, ETF inflows and futures activity all strengthened ahead of the festive season.

The doubling in India’s gold import value points to a meaningful pickup in physical demand from the world’s second-largest gold consumer. This should be read alongside rather than in isolation from the broader bullion rally driven by Fed rate expectations and US fiscal concerns already flagged elsewhere this week.

A firmer India print ahead of the festive season adds a structural demand layer beneath the options-driven and macro-driven moves already at work in gold, potentially reinforcing support on pullbacks if seasonal buying continues to build. The narrowing but still-present discount of Indian domestic prices to landed cost suggests local supply, including recycled old gold, remains ample enough to keep price transmission orderly rather than triggering shortage-driven premium spikes. 

Given gold’s own share of India’s total merchandise imports remains modest relative to the January-March average, the currency and trade balance implications from this rebound look limited for now, even as it adds a bullish demand data point to the broader gold narrative.