Demand for gold in India fell 15 per cent to 118.1 tonnes in the March quarter as prices surged, the steepest decline in five years, with jewellery taking the biggest hit, according to the World Gold Council data.
Demand for gold jewellery plunged 25 per cent to 71.4 tonnes during the period, while elevated prices, which rallied to surpass Rs 1 lakh per 10 grams for the first time, reinforced the metal’s appeal as a safe-haven asset among consumers. Investment demand remained resilient, increasing 7 per cent year-on-year to 46.7 tonnes, driven by growing interest in gold exchange-traded funds (ETFs), digital gold, coins and bars.
On Wednesday, gold prices were hovering around Rs 95,689 per 10 grams in the physical market.
Buyers Go for Lightweight Pieces
At the retail end price was Rs 98,469 per 10 grams with a 3 per cent goods and services tax.
The sharp increase in prices prompted consumers to buy smaller or lightweight pieces, or hold back on purchases altogether in the hope that prices might dip and offer a more affordable buying opportunity. Wedding-related demand was relatively resilient, given the essential nature of such purchases, said the WGC demand trend report. “However, this decline in volume was offset by a 22 per cent surge in the overall value of demand, propelled by soaring global gold prices which have risen 25 per cent since January 2025,” said Sachin Jain, regional CEO, India, of WGC.
In terms of value, gold sales in the January-March period amounted to Rs 94,030 crore, up from Rs 76,820 crore a year ago.
Globally, the demand for gold stood at 1,206 tonnes, a 1 per cent increase year-on-year, at a time when prices surpassed $3,000 per troy ounce for the first time. Gold recycled in India during the first quarter of 2025 totalled 26 tonnes, down 32 per cent from 38.3 tonnes in the previous three-month period. India imported 167.4 tonnes of gold, 8 per cent more than it did a year ago.
Jain said gold retailers are optimistic about the rest of the year, despite ongoing uncertainties. “The 8 per cent rise in gold imports to 167.4 tonnes in Q1 2025 further reinforces the supply-side preparedness by Indian jewellery retailers. In contrast, gold recycling fell by 32 per cent to 26 tonnes, as consumers retained their holdings amid record high prices. Our overall forecast for Indian gold demand for 2025 is between 700-800 tonnes,” he said.
