In India, the world’s second-largest gold-buying country, gold demand has declined as people forgo large weddings due to the spread of COVID-19. Traditionally, Indian gold demand comes mainly from wedding ceremonies. However, the spread of COVID-19 has affected the convenient times when Indian weddings are popular in the second half of January through May each year. To curb the spread of COVID-19, travel restrictions and social gatherings are being implemented.
Retail demand for gold declined as people are concerned about the pandemic. Gold demand is expected to slow down in Q1 2022, but traders remain optimistic since the new wave is not expected to be as severe as other waves before.
It remains to be seen if the first quarter of this year will be as good as last year’s. There, according to data from the World Gold Council, gold sales increased by 37% to 140 tons compared to the same period of the previous year.