Reserve Bank of India purchases 21.8 tons of Gold in Jan-Sep

Mumbai-India (Nov 2)  Reserve Bank of India bought 21.8 tons of Gold in Jan-Sep, with 13.7 tons being bought in the Jul-Sep quarter alone, attributing the trend to enhancement of the long-term stability of reserves amid rising concerns over global economic and political turmoil, according to the World Gold Council (WGC).

Global central banks bought over 148.4 tons of Gold in Jul-Sep, up 22% from the same period last year. The purchases were the highest since 2015, WGC added.

 WGC has estimated Jul-Sep Gold demand in India, the second largest consumer of the precious metal in the world, at 183.2 tons, up 10% from a year ago, as fall in prices to multi-month lows in the early part of the quarter encouraged people to buy jewellery as well as invest in the metal.

 The demand for jewellery rose 10% to 148.8 tons and investment demand rose 11% to 34.4 tons in Jul-Sep.

 In Jan-Sep, however, the overall demand for Gold in India was down by 1% on year to 523.9 tons. Though the current quarter is normally a vibrant period for Gold purchases in India, the seasonal spike in demand could be moderate in this festival season due to factors like lack of liquidity, rising Indian prices and impending elections in some key states impacting trade logistics.

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