India’s gold demand dropped sharply by 15% year-on-year to 118.1 tonnes in the first quarter of 2025, even as the value of purchases jumped by 22% to ₹94,030 crore, according to the World Gold Council (WGC). The decline in volume has been primarily attributed to soaring gold prices, which have risen by 25% since the start of the year.
The average gold price during the January–March period stood at ₹79,633.4 per 10 grams, a significant rise from ₹55,247.2 in the same quarter of 2024. Prices are now nearing the psychological milestone of ₹1,00,000 per 10 grams, influencing consumer buying behaviour.
WGC India CEO Sachin Jain noted that elevated prices have made gold less affordable for many. However, cultural traditions and upcoming events like Akshaya Tritiya and the wedding season continue to sustain consumer interest. “Despite high prices, the cultural and emotional value of gold remains strong in India,” Jain said.
Jewellery demand was particularly affected, falling by 25% to 71.4 tonnes — the lowest since 2020. Nonetheless, its value still registered a 3% year-on-year increase, underlining the impact of higher prices per gram.
Investment demand offered a contrasting picture, rising 7% to 46.7 tonnes from 43.6 tonnes a year earlier. Analysts believe this reflects gold’s enduring appeal as a safe-haven asset, especially in times of financial uncertainty. Demand for gold bars and coins also saw a sharp increase during the quarter.
As consumers adapt to rising prices, many have shifted toward buying lighter, smaller gold items. Others are delaying major purchases in anticipation of a possible price correction. Still, wedding-related demand has held steady, driven by the essential nature of gold in Indian matrimonial customs.
Gold imports in the first quarter climbed 8% to 167.4 tonnes, while recycling activity declined by 32% to 26 tonnes, indicating that consumers are choosing to retain their holdings amid high prices.
Looking ahead, the WGC forecasts India’s annual gold demand for 2025 to range between 700 and 800 tonnes. On a global scale, gold demand rose 1% to 1,206 tonnes in the first quarter — the strongest start to a year since 2019.
