India’s gold demand fell 16% year-on-year in the July–September quarter of 2025, as record-high prices curbed jewellery purchases even as investment buying surged, the World Gold Council (WGC) said on Thursday.Total gold demand declined to 209.4 tonnes in the third quarter, compared with 248.3 tonnes in the same period last year. However, the value of gold demand jumped 23% to Rs 2,03,240 crore from Rs 1,65,380 crore, driven by a sharp rise in prices, according to the industry body, PTI reported.Gold jewellery demand — which accounts for the bulk of India’s consumption– slumped 31% to 117.7 tonnes from 171.6 tonnes a year ago. Despite the decline in volume, the total value of jewellery purchases remained steady at around Rs 1,14,270 crore as consumers adjusted to elevated price levels.In contrast, investment demand showed “remarkable strength,” rising 20% by volume to 91.6 tonnes and surging 74% in value to Rs 88,970 crore from Rs 51,080 crore, the WGC said.“This highlights a deepening strategic commitment among Indian consumers to gold as a long-term store of value,” said Sachin Jain, Regional CEO (India), World Gold Council.The average gold price in India during the quarter climbed to Rs 97,074.9 per 10 grams– up 46% from Rs 66,614.1 a year earlier, excluding import duty and GST. Internationally, gold prices averaged $3,456.5 per ounce, compared with $2,474.3 in the same period last year.Despite the drop in overall demand, Jain said there were early signs of recovery in October, with strong festive and wedding season sales. “There is a 16 per cent drop in volume but there is a 23 per cent historic rise in value. We cannot ignore that,” he told PTI. “Indian consumers are catching up with the rise in per capita income and disposable income.”He noted that many consumers had advanced their wedding-related purchases in anticipation of further price increases, which could support strong demand in the fourth quarter.Gold imports fell 37% to 194.6 tonnes from 308.2 tonnes a year earlier, while recycling declined 7% to 21.8 tonnes. Jain said the lower import volume reflected the exceptionally high base in the year-ago quarter, following a duty cut announced in the July 2024 budget that triggered a surge in purchases.For 2025, the WGC expects India’s gold demand to total between 600 and 700 tonnes, likely near the higher end of that range, after cumulative demand of 462.4 tonnes in the first nine months.Globally, gold demand hit a record 1,313 tonnes in the third quarter, driven mainly by central bank buying and investment inflows. The National Bank of Poland remained the largest central bank buyer during the quarter.Jain said India’s demand profile contrasts with global trends, where central bank purchases and investment flows dominate. “Jewellery demand is predominantly an Indian phenomenon,” he said, adding that geopolitical uncertainties, trade tensions, and the diversification of dollar reserves into gold are likely to keep prices and demand momentum firm in the months ahead.
About the Author
