Record high prices pull India gold demand down 11 pc in 2025: WGC

India’s gold demand fell 11% to 710.9 tonnes in 2025 due to record-high prices, but value rose 30% to ₹7.51 lakh crore. Jewellery demand declined, while investment demand surged. 2026 demand is projected at 600–700 tonnes

Mumbai: India’s gold demand declined by 11 pc in 2025 and is expected to be around 700 tonnes this year, weighed down by record-high prices and changing consumer buying patterns, the World Gold Council (WGC) said in a report on Thursday.

Overall gold demand in India fell 11 per cent to 710.9 tonnes in 2025 and is expected to be between 600 and 700 tonnes in 2026, according to the WGC’s Full-Year 2025 Gold Demand Trends report.

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In 2024, the overall gold demand stood at 802.8 tonnes.

However, in value terms, skyrocketing prices boosted demand by 30 per cent to Rs 7,51,490 crores, compared to Rs 5,75,930 crores in the previous year.

“India’s gold market in Q4 2025 clearly reflected the dual impact of record-high prices and shifting consumer behaviour. Total gold demand for the quarter stood at 241.3 tonnes, marking a 9 per cent decline compared to Q4 2024.

“However, this moderation in volume was more than offset by a sharp rise in value, with overall gold demand increasing 49 per cent year-on-year to approx. Rs 303,470 crores,” WGC Regional CEO, India, Sachin Jain said.

The average gold price on January 1, 2025, rose by 67 per cent to Rs 1,01,572 per 10 grams in 2025, compared to Rs 70,754 in January 2024.

Demand for gold in India for the October-December quarter declined by 9 per cent at 241.3 tonnes as compared to 265.8 tonnes in the corresponding period of the previous year.

However, demand value surged by 49 per cent to Rs 3,03,470 crores from Rs 2,03,070 crores in the same period of 2024.

Total Jewellery demand in India for the whole of 2025 decreased by 24 per cent to 430.5 tonnes compared to 563.4 tonnes in 2024.

The value of jewellery demand increased by 12 per cent at Rs 4,54,390 crore, compared to Rs 4,04,510 crore recorded in 2024.

“Despite the wedding season, jewellery volumes dropped by 23 per cent to 145.3 tonnes as record-high prices and affordability pressures weighed on consumption. This volume-value divergence mirrors 2025’s exceptional price rally, with gold delivering over 60 per cent returns and 53 all-time highs,” Jain said.

In contrast, investment demand emerged as a clear bright spot during the quarter. Total investment demand rose 26 per cent year-on-year to 96 tonnes, while its value more than doubled to Rs 120,700 crore, up 108 per cent compared to the fourth quarter (Q4) 2024, he said.

“This strong performance highlights a growing strategic commitment among Indian investors to gold as a long-term portfolio hedge,” added Jain.

On the supply side, gold imports during Q4 2025 stood at 215.1 tonnes, marginally lower by 5 per cent compared to the same period last year.

Gold imports, which are usually in line with demand, dipped 17 per cent to 663.7 tonnes in 2025, as compared to 801 tonnes in the previous year, he said.

Recycling activity declined more sharply, down 27 per cent to 21.7 tonnes, suggesting that consumers are choosing to retain their gold holdings despite record prices, Jain said, adding that this behaviour further reinforces gold’s role as a trusted store of wealth, especially during periods of economic and market uncertainty.

“Overall, 2025 demand in volume terms was just lower by 11 per cent to 710.9 tonnes, but in contrast, value-wise the demand was up by a massive 30 per cent to Rs 7,51,490 crores in comparison to 2024,” he stated.

Meanwhile, according to WGC data, the Reserve Bank of India (RBI) added 4 tonnes of gold to its reserves compared to 73 tonnes in 2024.

Looking ahead to 2026, he said WGC expects Indian gold demand to be around 600-700 tonnes as gold is well positioned to continue benefiting from persistent global uncertainties, a potentially softer interest rate environment, and sustained diversification efforts by global central banks.

“At the same time, we expect investment demand to remain robust, driven by increasing awareness of gold’s portfolio benefits and a growing appetite for ETFs and digital gold as reliable hedges against volatility,” he added.