India’s gold demand drops by 10% in Q1 to 134.9 tonnes on high prices: WGC
Mumbai: India’s gold demand fell by 10 per cent during the April-June quarter to 134.9 tonnes compared to 149.7 tonnes a year ago as record yellow metal prices impacted affordability, the World Gold Council (WGC) said on Thursday.
In terms of value, gold demand witnessed a 30 per cent increase to Rs 1,21,800 crore during the second quarter of this calendar year, compared to Rs 93,850 crore in the same period of 2024, as prices breached the psychological Rs 1,00,000 per 10 grams mark for the first time, WGC said in its ‘Gold Demand Trends Q2 2025’ report.
The surging gold prices impacted jewellery demand in the country, which declined by 17 per cent to 88.8 tonnes during the quarter under review as compared to 106.5 tonnes in the corresponding quarter in 2024.
However, the value of jewellery demand grew by 20 per cent to Rs 80,150 crore from Rs 66,810 crore recorded in the April-June quarter of 2024.
“As we reflect on the performance of India’s gold market in Q2 2025, it is evident that we are witnessing a pivotal moment in consumer behaviour.
Despite a 10 per cent decline in physical gold demand volumes to 134.9 tonnes compared to 149.7 tonnes last year, the value of this demand has surged by an impressive 30 per cent,” Sachin Jain, WGC Regional CEO - India, said. This mirrors the rising price of gold, with the average quarterly global price per ounce reaching $3,280.4 and the domestic price per 10 grams touching Rs 90,306.8, are clear indicators of gold’s enduring appeal as a safe-haven asset, Jain said.
“With total gold demand from January to June at approximately 253 tonnes, we anticipate full-year demand to range between 600 tonnes and 700 tonnes. If there is stability (price), which we think will be, then it should be on the upper end of the 700-tonne level. However, if the price continues to soar dramatically, which is a very bleak possibility, then the demand could be on the lower side of this projection,” he added.
On the investment front, Jain said, “We are encouraged to see a 7 per cent increase in demand volumes, reaching 46.1 tonnes, and a remarkable 54 per cent growth in value to Rs 41,650 crores. Such figures underscore a deepening strategic commitment among consumers to gold as a long-term store of value.”
On the supply side, gold imports into India have decreased significantly by 34 per cent to 102.5 tonnes, compared to 150 tonnes in the same period in 2024, he said.
Gold recycling remained resilient with a modest 1 per cent increase to 23.1 tonnes in the second quarter compared to 2 tonnes in the same period of 2024, according to the WGC data.
Meanwhile, Global gold demand increased 3 per cent year-on-year to 1,249 tonnes during the April-June quarter of the current year, amid a high price environment, World Gold Council (WGC) said in a report on Thursday.
Strong gold investment flows largely fuelled quarterly growth, as an increasingly unpredictable geopolitical environment and price momentum sustained demand, according to WGC’s Q2 2025 Gold Demand Trends report.
“Gold ETF investment remained a key driver of total demand, with inflows of 170 tonnes over the quarter, compared with small outflows in Q2 2024. “Asian-listed funds were major contributors at 70 tonnes, keeping pace with US flows. Combined with record inflows in the first quarter, global gold ETF demand reached 397 tonnes, the highest first-half total since 2020,” the report added.
Meanwhile, the total bar and coin investment also increased 11 per cent year-on-year, adding 307 tonnes. Chinese investors led the way with a 44 per cent year-on-year increase to 115 tonnes, while Indian investors continued to add to their holdings, totalling 46 tonnes in the second quarter.
Divergent trends emerged in Western markets as European net investment more than doubled to 28 tonnes while US bar and coin demand halved to 9 tonnes in the second quarter.
Central banks continued to buy, adding 166 tonnes in the April-June quarter this year, led by Poland, Turkey and Azerbaijan.
