Ahead of Diwali: India's Gold Imports Drop 81% and Funds Record Strong Inflows
Gold ended September at $4,176 per ounce, down 8.5% month-on-month, and Indian imports plunged 81% year-on-year to $1.8 billion, accompanied by strong inflows into gold funds.
Gold ended the month of September at $4,176 per ounce, down 8.5% from the previous month, according to World Gold Council data reported by Upstox.
The domestic gold price in India fell 4.8% to 1,47,613 rupees per 10 grams, as the Diwali and Dhanteras season approaches, which increases demand for the metal.
The gap between the domestic price and the import price narrowed from $66 per ounce in September to $8 on October 16; domestic demand in India is typically measured by this gap.
India's gold imports in September reached $1.8 billion, or approximately 20 tonnes, an 81% drop year-on-year and the lowest level since March 2024, while Indian gold ETFs recorded inflows of 44.5 billion rupees.
What do these terms mean?
World Gold Council: An industry organization that tracks global gold supply and demand data and issues regular market reports.
Import Price: The benchmark price based on which imported gold enters the domestic market before duties and taxes are added.
Exchange-Traded Funds (ETFs): Investment funds traded on stock exchanges like equities, tracking the price of gold without requiring physical ownership of the metal.
Diwali: One of the most important festivals in India, seeing high demand for gold for gifting and savings.
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