Gold demand set to pick up

Gold performance peaked during second half of 2021 as lockdown norms were relaxed and the demand for festive and wedding buying saw all time highs. Investment in yellow metal also increased due to fall in Covid-19 restrictions.

Metals Focus an independent precious metals research consultancy expects in 2022 the demand for gold in India to improve further, primarily driven by strong economic growth, relatively stable precious metals prices and pent-up demand.

As Indians' demand kept going for yellow metal, there was a surge in gold imports between April and November 2021 and was at a nine-year high of $33.23 billion — around 50 per cent higher than 2019-20.