India’s gold market showed mixed signals in May 2024, with gold prices climbing over 30% year-to-date despite a temporary pause in May.
While jewelry sales slowed after the wedding season, physical gold investments remained strong, and gold-backed lending surged 120% year-over-year. Gold ETFs returned to positive territory with modest inflows after two months of outflows.
The Reserve Bank of India paused its gold purchases but saw gold’s share in forex reserves grow to a record 12.3%. Looking ahead, demand is expected to recover when India’s festive buying season begins in mid-August.