Indian appetite for gold jumped by more than a third in the last quarter, in sharp contrast to the rest of the world, boosted by jewellery demand for the wedding season, an industry body said on Thursday.
Demand in India rose 39 percent to 225.1 tonnes in July-Sept - the second highest on record for the quarter, even as global appetite fell to its lowest in nearly five years, according to the World Gold Council.
Consumption in the world's other major buyer, China, tumbled 37 percent year-on-year in the same period. Although Indian demand overtook China for the quarter, it still lagged for the total from the first nine months of the year.
"Demand will continue to have positive growth over last year as this is a good demand period and a lot of marriages are happening," said Somasundaram PR, head of the WGC's India operations.
Jewellery demand in India surged 60 percent in the third quarter, but investment demand eased 10 percent.
The precious metal forms an essential part of a bride's dowry in India, and is considered auspicious as a gift or offering at religious festivals.
The WGC maintained its prediction that Indian demand would reach 850-950 tonnes for the year, driven by jewellery purchases.