Gold prices lost momentum toward the end of June, closing the month with modest gains of 0.3% at US$3,287/oz. Earlier in the month, prices were supported by a weaker dollar, heightened geopolitical tensions, softer US Treasury yields, and increased inflows into gold ETFs. However, growing risk-on sentiment among investors capped any further upside.

Leading listed gems and jewellery companies delivered a strong performance in the April–June quarter, reporting a y/y revenue growth between 18% and 31%. This growth was largely price-led even as volumes remained flat or moderated. A ~32% y/y rise in gold prices during the quarter and key festivals  and wedding demand during April-May boosted sales revenue.

Festive season is anticipated to drive a recovery in jewellery demand from mid-August, while investment buying is expected to remain steady.

Highlights:

• Seasonal weakness weighs on jewellery sales; investment buying gains ground
• Gold extends gains in July, remains top performer with y-t-d gains of 28%.
• Listed jewellers post double-digit revenue growth in April -June quarter despite flat or lower volumes
• Gold ETFs record second-highest monthly inflows in June
• After a two-month pause, RBI makes a modest gold purchase in June
• Gold imports drop to a 14-month low in June.