Summary:
Mumbai, Jan 28 (PTI) India"s gold consumption surged to 797.3 tonnes in 2021, on the back of recovery in consumer sentiments and pent-up demand post COVID-19-related disruptions and the bullish trend is set to continue this year as well, according to the World Gold Council (WGC).
WGC in its Gold Demand Trends 2021 Report said India"s total gold demand jumped to 797.3 tonnes in 2021, registering a massive 78.6 per cent jump from 446.4 tonnes during 2020.
"The year 2021 revalidated the strength of conventional wisdom about gold and holds several lessons in revival that will shape policy thinking for years to come," WGC Regional CEO, India, Somasundaram PR told PTI.
Somasundaram further said "India"s gold demand recovered by 79 per cent to 797.3 tonnes chiefly a result of an exceptional fourth quarter demand of 343 tonnes that surpassed even our most optimistic expectation articulated in the third quarter and turned out to be the best quarter in our recorded data series".
Going forward, he said, this year COVID-19 and its future variants will remain a factor to watch as will price movements in gold, given global concerns on inflation, interest rate and geo-political developments.
"The spurt in demand that is, in part, a result of pent-up demand in the fourth quarter is less likely to be repeated this year, though the revival will continue to set a new normal above pre-pandemic levels.