In a positive turn for the Indian gold market, industry leaders are optimistic about a robust festive and wedding season ahead. Sachin Jain, Regional CEO, India, World Gold Council, recently shed light on the promising trends and anticipated demand for gold in the upcoming months. His insights come at a time when India's gold market has witnessed key developments, including a reduction in import duties, boosting both physical gold purchases and interest in gold exchange-traded funds (ETFs).

“We've seen an increase in both physical gold purchases and interest in gold ETFs after the recent reduction in import duties,” Jain noted. He further explained that India's gold demand is set to rise, driven by various factors including higher rural purchasing power, which has been buoyed by a successful monsoon season, as well as pro-gold policies introduced by the government.

Jain also pointed to the preparations made by the jewellery industry for the festive and wedding seasons. "Anecdotal feedback suggests manufacturers and retailers have done new product lines and are prepared to cater to the consumers," he stated, emphasizing that the industry is ready to meet the growing demand as the festive celebrations begin.

The festival of Navratri, set to start soon, will kick off a string of auspicious occasions including Dussehra and Diwali, traditionally seen as a prime period for gold purchases in India. Jain highlighted that the demand is expected to peak around Dussehra and continue strongly through the wedding season, which will be in full swing from December to February. Gold purchases, which hold a symbolic value of prosperity and good fortune, are likely to see significant momentum in this period.

As the festive season aligns with wedding celebrations, the Indian gold market is poised for a vibrant phase, with both urban and rural consumers driving the demand for the yellow metal.