India’s gold demand in the March quarter rose 8 per cent to 136.6 tonnes from 126.3 tonnes a year ago, but recent rallies in the price of the precious metal could cut the total consumption in 2024 to the lowest in four years, the World Gold Council said on Tuesday.

Demand for gold in India could stand between 700 tonnes and 800 tonnes in 2024, with the figure falling near the lower end of the range if prices continue to rally, Sachin Jain, regional CEO of World Gold Council, said. In 2023, gold demand was 747.5 tonnes.

During the quarter ended March, investment demand grew 19 per cent, which was more than jewellery demand growth at 4 per cent. Total jewellery demand was 95.5 tonnes while investment demand was 41.1 tonnes.

“The price correction in February sparked investor interest, with anticipation of a rebound driving purchases. As the price rallied to successive record highs, investors remained bullish, contributing to the robust demand. Investments into Gold ETFs too saw positive inflows of over 2 tonnes,” Jain said.

“The Reserve Bank of India also grew its gold reserves by 19 tonnes during Q1,” Jain said. According to RBI data, the gold reserves as of March 29, 2024 were 822.09 tonnes compared with 794.63 tonnes on April 7, 2023.

Central banks globally have doubled down on gold with a net purchase of 290 tonnes during Q1 2024 and continuing on the trend in 2022 and 2023.