Analysts believe that the pick-up in gold demand may be helped along due to expectations of economic recovery across the world.

“In the wake of higher vaccinations and easing of lockdowns, economic activity has started to recover. In turn, gold retail demand is set to make its own recovery during Diwali this year,” said Mukesh Kumar, senior analyst at the World Gold Council India said.

Nearly 30% of urban Indians plan to spend more on buying gold in the next three months than they did last year, according to a survey conducted by global market research firm YouGov in August. The company’s Diwali Spending Index—an indicator of the spending intent among Indian consumers—jumped to 90.71 this year, compared with 80.96 in the previous year.

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