After rising more than 1% on Wednesday, the spot gold price returned to around $2,360 per ounce, with a year-to-date increase of 14%.
Yesterday, the World Gold Council (WGC) stated in its “2024 Mid-Year Outlook Report” that gold has performed very well year-to-date, outperforming most major asset classes. However, for the second half of the year, the WGC is more conservative, stating that gold prices “may continue to fluctuate within a range similar to recent levels.”
The WGC said, “In other words, after gaining good momentum in the first half, the current market trend suggests that performance in the second half will fluctuate within the current levels. This is not the first time we have described a similar gold expectation result.”
The World Gold Council mentioned that one of the main consumers of gold, India, saw a 6% drop in demand for gold jewelry last year. In India, buying gold during festivals is considered auspicious. However, given the high gold prices, demand for gold was weak during a traditional festival in April.
In May this year, Titan, the jewelry and fashion subsidiary of India’s Tata Sons, reported quarterly profits below market expectations, with analysts attributing the cause to the impact of high gold prices on demand. The World Gold Council previously also believed that with rising gold prices, the country’s total gold demand could fall to its lowest level in four years.
Shaik Ameen, the owner of Gold Palace jewelry store in downtown Bangalore, told the media that Indian households have reduced their pre-wedding purchases due to high prices. He said the store receives about 50 customers a day, previously able to close deals with about half of them, but now this ratio is only a quarter.
Ameen added, “Customers who could previously afford 100-200 grams of gold now turn to around 50-60 grams.” S&P Global’s Indian analysis firm Crisil expects that by March 2025, India’s sales volume will “remain stagnant.”
Surendra Mehta, Secretary General of the India Bullion and Jewellers Association, stated that although Indians are “enthusiastic about gold,” rising gold prices are impacting families before weddings, “I think prices will not pull back soon, and they only have two choices: buy less quantity or lower purity.”
Vithika Agarwal, co-founder of Bangalore’s high-end wedding planning company Divya Vithika Wedding Planners, said that after the COVID-19 pandemic, the cost of weddings has increased significantly, “No matter how much you spend, you can’t enjoy the same experience as before.”
However, Agarwal pointed out that this will not stop the wealthy from hosting grand banquets. “When I meet high-end clients, it doesn’t make much of a difference, as some cultures… it’s important to show off.” Regardless of wealth, Indian families highly value weddings.
Next week, the formal wedding of Anant Ambani, the youngest son of Reliance Industries chairman Mukesh Ambani, and Radhika Merchant, daughter of Indian pharmaceutical giant Viren Merchant, will take place in Mumbai. In March, celebrities like Zuckerberg, Bill Gates, and Hillary attended the pre-wedding celebrations.
[Source – 上海有色网] 金价高企正威胁需求？这一主要消费国的购买欲望已受冲击 https://news.smm.cn/news/102834754
