Demand for gold in India was down in the July-September quarter of 2025, hit by rising prices, despite it being a traditionally gold-loving nation.
As per data by the World Gold Council, India’s gold demand fell by 16 per cent by volume, although investment buying increased on safe-haven demand.
The total demand for gold declined to 209.4 tonnes in the third quarter from 248.3 tonnes a year earlier, according to the industry body, which released the data released on Thursday.
However, the value of demand jumped 23 per cent to ₹2,03,240 crore from ₹1,65,380 crore, reflecting sharply higher gold prices.
India is the world’s second-largest bullion market, where gold jewellery accounts for the bulk of consumption. In the third quarter, the value of jewellery purchases remained flat at around ₹1,14,270 crore as buyers adjusted to elevated price levels.
The average gold price in India rose to ₹97,074.9 per 10 grams during the quarter, up 46 per cent from ₹66,614.1 a year earlier, excluding import duty and GST. International prices averaged USD 3,456.5 per ounce, compared with USD 2,474.3 in the year-ago period.
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Meanwhile, the investment demand showed “remarkable strength”, rising 20 per cent by volume to 91.6 tonnes and surging 74 per cent in value terms to ₹88,970 crore from ₹51,080 crore, the WGC said, showing Indian customers’ preference for gold as a long-term investment option.
“This highlights a deepening strategic commitment among Indian consumers to gold as a long-term store of value,” said Sachin Jain, World Gold Council Regional CEO for India.
Despite the volume decline, Jain remained optimistic about demand during the crucial festive and wedding season, citing strong sales in October during Diwali.
“There is a 16 per cent drop in volume but there is a 23 per cent historic rise in value. We cannot ignore that,” Jain pointed out, adding, “Indian consumers are catching up with the rise in per capita income and disposable income.”
Jain also said many weddings were preponed on account of rising gold prices, which gave confidence for a strong fourth quarter.
Gold imports tumbled 37 per cent to 194.6 tonnes from 308.2 tonnes, while recycling fell 7 per cent to 21.8 tonnes.
Jain said the import figures reflected last year’s surge following a historic duty reduction announced in the July 2024 budget, which made the year-ago quarter an exceptionally strong base for comparison.
The council expects full-year demand of 600-700 tonnes, toward the higher end of that range, after demand of 462.4 tonnes in the first nine months.
Jain said India’s consumption patterns differ from global trends as jewellery demand is predominantly an Indian phenomenon, while global demand is driven by central banks and investment flows.
For instance, the National Bank of Poland remained the largest buyer among central banks in the third quarter. Globally, gold demand rose to 1,313 tonnes in the third quarter, the highest on record.
He attributed the continued strength in gold prices to geopolitical uncertainties, potential trade wars, and countries diversifying their dollar reserves into gold, factors that are expected to support prices and demand momentum going forward.
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