Gold and Silver Demand Surge Expected During Festive Season

Upcoming Festivities to Boost Demand

The festive season in India typically heralds a surge in demand for gold and silver. This year is expected to see no exception, with experts predicting a significant increase in demand for precious metals during the next two to three months.

Factors Driving Demand

Several factors are contributing to this expected surge. Firstly, gold is considered an auspicious commodity in Indian culture, making it a popular choice for purchases and gifting during festivals. Secondly, the ongoing economic recovery is boosting consumer sentiment and spending, leading to increased demand for gold and silver as investment options.

International Price Trends

Internationally, gold prices are currently hovering around USD 1,496.79 per troy ounce. While this represents a slight decline from the recent peak, prices are still relatively high, supporting the demand for gold in India.

Central Bank Demand

Central bank buying of gold has slowed down in recent quarters, but it remains a significant factor influencing the market. According to the World Gold Council, central banks purchased 189 tonnes of gold in the first half of 2024, representing a modest increase from the previous year.

Analyst Predictions

Gold analysts predict that the festive season will provide a strong boost to gold and silver demand. One economist has even predicted that gold could reach a historic USD 23,287 per ounce in the coming months.