Higher gold demand expected in India in Q4

According to data from the customs authorities, Switzerland exported 173.9 tons of gold in August, 8% more than in the previous month. Nearly 70% of this total was shipped to Asia. Whereas exports to India remained constant month-on-month, 50% more gold was exported to China. 

"India is also likely to import more gold again in the coming months given that the All India Gems & Jewellery Trade Federation predicts that gold demand there will pick up noticeably in the fourth quarter", says Commerzbank. 

Because of the low prices, gold demand could apparently grow by as much as 15% year-on-year to around 250 tons, which would constitute the highest fourth-quarter figure since 2012. 

"Indian gold demand traditionally peaks in the fourth quarter because the festival season begins at the end of September and the wedding season starts in November. Increased gold demand in India and China should lend support to the gold price", added Commerzbank.