According to David Tait, CEO of the World Gold Council (WGC), the demand for gold in India and globally is expected to remain strong throughout 2024. Tait attributes this forecast to ongoing geopolitical uncertainties, increasing national debts, and persistent inflation concerns, which are likely to drive investors towards the safe-haven asset of gold. Tait also anticipates that central banks, particularly those in less developed countries, will increase their gold reserves in 2024 to "rebalance their reserves", following the lead of their counterparts in advanced nations.

Tait further explains that rising awareness among young investors about the appeal of gold as a reliable investment option, especially in the face of depreciating currencies, is contributing to the positive outlook for gold. Although global gold demand, excluding over-the-counter trading, experienced a 5% decline to 4,448.4 metric tonnes in 2023, it remained robust compared to the 10-year average.

In India, while overall gold demand decreased by 3% in 2023 to 747.5 tonnes, Tait highlights a significant shift in demand towards gold bars and coins, which saw a 7% increase. He attributes this shift to the geopolitical climate, which is encouraging investors to seek gold as a safe investment option.

Regarding gold prices, Tait predicts that the elevated demand could support an increase in gold prices in 2024, continuing the trend of gradual price escalation seen in recent years. He notes that although gold prices reached a record high of $2,135.4 per troy ounce in December 2023 before retracting, they have remained above the psychological $2,000 level this year.

Tait also comments on India's sovereign gold bonds, stating that they are unlikely to pose a significant threat to the physical gold trade. Instead, he believes that the bonds, often referred to as 'paper gold', will provide investors with additional investment options, further emphasizing the value of gold as a stabilizing asset.

To address trust and transparency issues in the gold industry, the WGC is establishing a Self-Regulatory Organization (SRO) in India. Funded by the WGC initially, the SRO aims to work collaboratively with the gold industry to enhance trust, transparency, and educational initiatives within the sector.