New Delhi, Oct 29 (IANS): India's Q3CY21 gold demand rose 47 per cent on a year-on-year basis, said World Gold Council.

Accordingly, the demand for gold in India for Q3CY21 rose 139.1 tonnes from 94.6 tonnes reported for the corresponding quarter of the previous year.

Besides, the country's Q3FY21 gold demand value rose 37 per cent to Rs 59,330 crore on a YoY basis.

Furthermore, total jewellery demand in India for Q3 2021 increased by 58 per cent to 96.2 tonnes on a YoY basis.

As per WGC, a combination of low base effect along with return of positive trade and consumer sentiments has led to higher gold demand in Q3CY21.

"This is primarily driven by what appears to be a firm grip on the pandemic with higher vaccination and falling infection rates, leading to a strong rebound in economic activity," WGC said.

"Softer gold prices have also generated significant consumer interest ahead of seasonal demand. Trade activity witnessed during various buyer-seller meets and anecdotal feedback from manufacturers indicate that this Q4 festive season could be the best in several years, with strong imports much ahead of Q3 demand."

According to the WGC, the upcoming festive and wedding season, is expected to be the busiest gold-buying season, since the start of Covid.

"Demand for digital gold has also increased manifold, innovative tech initiatives, tie-ups with digital gold and UPI platforms by leading jewellers has brought about a substantial increase in volume of buyers and investors preferring online purchases."

"In the months ahead, soaring commodity prices and logistical costs are expected to impose further pressures and the RBI has already adjusted its inflation expectations higher. Rising inflation tends to drive gold demand."

"While we have not made any forecast for the rest of the year, barring any unexpected twist in tale, we could see a sharp spike in demand in Q4 2021."