Asia Maintains Gold Investment Momentum with USD 438M Influx in July

Asia continues its winning streak in attracting gold investments, achieving 17 consecutive months of inflows, amounting to USD 438 million in July, as reported by the World Gold Council. The reduction in India's gold import duty and favorable market conditions have played a significant role.

Asia has extended its streak of attracting gold investments, notching 17 consecutive months of inflows, with a USD 438 million influx in July, according to a World Gold Council report. India has emerged as a frontrunner, thanks to the reduction in its gold import duty to 6 per cent from 15 per cent following the Union Budget.

As of July 23, India’s gold import duty cut to 6 per cent has substantially impacted the gold market. Gold prices reached Rs 65,314 per 10 grams in July, marking a 4.5 per cent return for the month and a 17.5 per cent year-to-date return. This performance has driven significant inflows into Indian gold ETFs, as investors seize favorable market conditions.

These adjustments have made gold Exchange Traded Funds (ETFs) a more attractive investment, boosting the metal's appeal. Furthermore, gold’s performance in local currency has added momentum, making it a preferred asset for Indian investors. Despite a slight dip in June, July saw a 4 per cent price increase, with gold peaking at USD 2,480 per ounce before a modest decline towards month-end.