Gold Trends from January to June 2020

During the first six months of 2020, investors witnessed returns of 25% from gold. With other investment assets churning out very low returns, the precious metal became a safe haven for many last year.

With this in mind, let us dive deep into the major gold trends during the first six months of 2020 and how the Coronavirus affected the demand for the metal in India.

Drop in Jewellery Sales

India saw its jewellery consumption at just 109 tonnes during the first six months of the year. The consumption of jewellery was recorded at 180 tonnes during the same period in 2019.

Even the central banks had resisted the urge to purchase the yellow metal. Their purchase of bullion was around 40% lower than the 2019 level which was recorded at 233 tonnes.

The World Gold Council had said that the demand for jewellery during the first half of the year had halved to reach 572 tonnes in the world, owing to the pandemic. The demand for precious metals during the second quarter (April to June) of last year was just 251 tonnes.

Low Level of Imports

Every year, India imports between 800 tonnes and 900 tonnes of gold. However, statistics have shown that in April 2020, the figure was just 50 kilograms.

During the last six months of the year, the country had imported just about 100 tonnes of gold. We should, however, keep in mind that low gold imports are a good sign for India's Current Account Deficit.

Month Trend of gold imports
April 99.93%
May 98.4%
June 77.5%

Constant Gold Rates Spurts

March and April witnessed gold prices constantly reaching new heights. During the first week of August, international gold prices had reached $2,000 per ounce.

In India, the gold prices were reported between Rs.53,000 and Rs.54,000 per 10 grams. A lot of market experts and analysts had said that gold prices would reach Rs.55,000 by the time Dhanteras dawns on the country.

Increase in Demand for Gold Loans

COVID –19 had weakened economies all across the world and many people fell victim to joblessness. During this time, people were searching for various kinds of gold loans on Google. The gold loan lender, Muthoot Finance had reported a growth in its gold loan to Rs.41,611 crores by June 2020.

Boost in Sovereign Gold Bonds

India's demand for gold in August was pretty high when prices had reached Rs.5,334 per SGB. The subscription for the Series-V had reached 6,349.78 kilos at Rs.3,386.97 crores.

Record Inflow into ETFs

One catalyst for the appreciation of gold prices was ETF (Exchange-traded fun) activity. As currencies like the U.S. Dollar, Sterling, Renminbi, and Euro had weakened, it caused the U.S. dollar gold price to increase by 17% during the first six months of the year.

AMFI data had shown gold exchange-traded funds churning out more than Rs.3,500 crore in the first six months of the year in India. During the same period in 2019, the ETF market investors had seen Rs.160 crore being pulled out.

Gold Rate In Metro Cities
Gold Rate In Other Capitals
Gold Rate In Other Major Cities
Gold Rate In States
Bank Gold Schemes

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Customer Reviews

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  • review
    "Need to decrease interest rate "
    BAJAJ FINANCE LIMITED
    0.5 4.0/5 "Great!"
    BAJAJ FINANCE has offered a pre approved personal loan offer and I accepted for the same. I have taken this loan 2 months back. The process was smooth and submitted required docuemtns within 1.5 hrs amount was credited to my account with 1.64L with tenure period of 4 years. The rate of interest is 18% which is high. Fee was deducted of 9K. There is pre closure option after 30 days with charge of 4%. EMI need to pay the amount of 4K. The best which I would like to say is online process was done with short term.
    Was this review helpful? 117
    , chennai
    Reviewed on Mar 21, 2020
  • ICICI Bank
    ICICI Bank
    "Good service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    The tenure for ICICI personal loan is for 3 years, I have taken the loan for some personal purposes. I got my loan statements on time but the interest rate of the loan is 12% which is bit high for me. I wish the bank can reduce it up to 10%. Otherwise everything is good about the loan.
    Was this review helpful? 112
    , hyderabad
    Reviewed on Mar 21, 2020
  • RBL Bank
    "Easy to convert for EMI "
    RBL BANK
    0.5 4.0/5 "Great!"
    I got RBL card offer from BAJAJ Finance. I have been using this card past 10 months which is a life time free card. The credit limit is sufficient of 55K. EMI conversion is avail and I can convert via mobile app whenever required with nominal charge. I use this card for general purpose. Based on usage I get points but not yet redeem it.
    Was this review helpful? 288
    , chennai
    Reviewed on Mar 21, 2020
  • SBI Cards
    "Good service"
    SBI CARDS
    0.5 4.0/5 "Great!"
    SBI credit card have offers and reward points but I have not redeem them yet, this is a domestic card, the credit limit is of 50000 which I am very much satisfied as per my need. I got my statement on time. I used this card for personal purposes.The card is very user friendly.
    Was this review helpful? 323
    , hyderabad
    Reviewed on Mar 21, 2020
  • SBI Cards
    "Ok service"
    SBI CARDS
    0.5 5.0/5 "Blown Away!"
    I am using SBI credit card for more than three months, there are some reward points and offers in the card. I used this card for online shopping, fuel surcharge and groceries.The credit limit of the card is sufficient and I like the most about the card is that it is a life time free card and very good to use.
    Was this review helpful? 281
    , hyderabad
    Reviewed on Mar 21, 2020
  • IndusInd Bank
    "Ok service"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    The bank agent suggest me to take credit card from INDUSIND and I have taken it because it doesn't have any annual fee. The offer and reward points are available in the card are good. I am satisfied with the limit of the card. I used the card for general purposes. But it will be nice, if the offers and reward points will be more.
    Was this review helpful? 231
    , jaipur
    Reviewed on Mar 21, 2020
  • IndusInd Bank
    "Good service"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    I am using INDUSIND credit card for 3 months. The card have no offers available and also there is no rewards. The only benefit is that its a life time free card and the credit limit is only for 75000 I am not that satisfied as i expected to get around 1.5 lakh. Apart from the limit over all experience is good.
    Was this review helpful? 206
    , chennai
    Reviewed on Mar 21, 2020
  • IndusInd Bank
    "Excellent card"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    I have got INDUSIND credit card few months ago and I have used it for two months now ,the credit limit of the card is Rs.70000 which is a life time free card. The bank have informed me every details about the reward points and offers but I have not got any time check it. I am satisfied with their card service.
    Was this review helpful? 82
    , hyderabad
    Reviewed on Mar 21, 2020
  • ICICI Bank
    "Good service"
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    Am having ICICI credit card for two years, I feel good and have not face any issues. The best part about the card is its a life time free card. I used to get my card statement on time. I used this card for shopping, groceries and for many other personal purposes.I am using the bank mobile app which function smooth and simple.
    Was this review helpful? 229
    , faridabad
    Reviewed on Mar 21, 2020
  • SBI Cards
    "Good service"
    SBI CARDS
    0.5 5.0/5 "Blown Away!"
    I have used SBI credit card for 2-3 months, but I have not got any time to check about the offers available in the card. The limit of the card is 38000 and I am satisfied because its a life time free card. I used to get my card statement on time and the net banking is also working very well.
    Was this review helpful? 255
    , faridabad
    Reviewed on Mar 21, 2020
  • IndusInd Bank
    "Good service "
    INDUSIND BANK LTD
    0.5 4.0/5 "Great!"
    Since it is a life time free card offer from INDUSIND so I chosen it and applied through online. I received a call on time and they have done the verification process. Hence I received the card by 7 days, the credit limit is okay for me. Its easy to use for all purposes.
    Was this review helpful? 176
    , chennai
    Reviewed on Mar 21, 2020
  • Citibank
    "Good "
    CITIBANK
    0.5 4.0/5 "Great!"
    CITI has provided good offers and benefits on 2 months before. So I chosen this card and applied through online. It is annual fee chargeable of 500 rupees bu there is waiver off option if I spend 30K within a year. The credit limit is 65K. There is EMI conversion avail for this card.
    Was this review helpful? 175
    , coimbatore
    Reviewed on Mar 21, 2020
  • HDFC Bank
    "very good"
    HDFC BANK
    0.5 5.0/5 "Blown Away!"
    I have used credit card from HDFC bank for 1 year which is very good and also very comfortable, its a life time free card and lots of offers are available in the card. This card was suggested to me by my colleague. Mobile banking also functions very smooth.
    Was this review helpful? 241
    , bangalore
    Reviewed on Mar 21, 2020
  • IndusInd Bank
    "Average service"
    INDUSIND BANK LTD
    0.5 4.0/5 "Great!"
    INDUSIND bank credit card have an credit limit of of Rs.75000, there is no offers available in the card and it also have a charges of 3000 along with GST. I hardly receive any remainder messages for my bill payment due to that some time I could not pay my bill on time. I would advise them send my bill on time before the due date.
    Was this review helpful? 158
    , bangalore
    Reviewed on Mar 21, 2020
  • Axis Bank
    "Average"
    AXIS BANK
    0.5 4.0/5 "Great!"
    Through showroom got suggestion to take a car loan from AXIS bank. I taken this loan on 3 years back. I got the loan amount of 4L with tenure period of 4 years. The rate of interest was okay. I done the down payment of around 1.5L. EMI need to pay of 10,500 rupees. The car model is Swift Dzire. I taken for commercial purpose based on amount which I get on monthly doing the EMI payment.
    Was this review helpful? 172
    , kolkata
    Reviewed on Mar 21, 2020
  • ICICI Bank
    "Need to increase the credit limit "
    ICICI BANK
    0.5 5.0/5 "Blown Away!"
    I have been using ICICI card for more than one year. They have provided an annual fee chargeable card and waiver off option is applicable. The credit limit is okay of 50K. Since I need to do purchase about 45K on some of the month so this limit is not sufficient. I swipe the card for travel, shopping and fuel purposes. I have not opted for EMI conversion.
    Was this review helpful? 186
    , kolkata
    Reviewed on Mar 21, 2020
  • Axis Bank
    "Good card"
    AXIS BANK
    0.5 4.0/5 "Great!"
    I have been using AXIS bank credit card for 3 years, Its a life time free card so I applied the card through bank. The agent have informed me everything about the card. I used to get offers of 10% on petrol bunk and shopping.The limit of the card is Rs.45000 and I used to pay my bill directly through bank.I am also using their net banking which is very good.
    Was this review helpful? 228
    , kolkata
    Reviewed on Mar 21, 2020
  • IndusInd Bank
    "Good service"
    INDUSIND BANK LTD
    0.5 4.0/5 "Great!"
    I got INDUSIND credit card from few months ago.The card have an EMI conversion. I used the card for multi purposes like shopping, online payment, ticket booking. This is annually chargeable card, I am not satisfied with the credit limit of Rs.75000 as I am expecting more than than 1 lakh.
    Was this review helpful? 175
    , kolkata
    Reviewed on Mar 21, 2020
  • IndusInd Bank
    "Excellent"
    INDUSIND BANK LTD
    0.5 5.0/5 "Blown Away!"
    I got a life time free card offer from INDUSIND bank hence applied through online on three months back. I received the call on time and the process was done on smooth. I got the card on exact time frame. The credit limit is sufficient and they provided good offers and benefit as well.I use this card for shopping and travel purpose.
    Was this review helpful? 154
    , kolkata
    Reviewed on Mar 21, 2020
  • RBL Bank
    "Average service"
    RBL BANK
    0.5 1.0/5 "Really Bad"
    RBL credit card is a chargeable card, I always have to go to Bajaj Finance to pay my credit card bill. I am not satisfied with the customer service which has to be improved. I used this card when ever needed for shopping, fuel surcharge and bill payment.The limit of the card is fine.
    Was this review helpful? 188
    , ranchi
    Reviewed on Mar 21, 2020
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