New Delhi, April 30 — Gold demand in India declined by 15 percent year-on-year to 118.1 tonnes during the January to March quarter of 2025, despite a 22 percent surge in value to Rs 94,030 crore, according to the latest report released by the World Gold Council (WGC).
The drop in demand was attributed primarily to a sharp increase in gold prices, which rose by nearly 25 percent since the start of the year, reaching the psychological threshold of Rs 100,000 per 10 grams. This price surge significantly altered consumer buying behavior, as per agency report.
WGC India CEO Sachin Jain stated in the council’s quarterly review that while high prices have impacted affordability, the deep-rooted cultural value of gold continues to support buying sentiment, especially around auspicious occasions like Akshaya Tritiya and the upcoming wedding season.
Experts observed that while the current high prices may lead to cautious buying, the traditional and cultural importance of Akshaya Tritiya — a day considered highly auspicious for gold purchases in India — is expected to maintain momentum in retail demand.
Despite the overall decline in demand, investment in gold rose seven percent during the first quarter, from 43.6 tonnes last year to 46.7 tonnes this year. Conversely, jewellery demand took a significant hit, plummeting 25 percent to 71.4 tonnes compared to 95.5 tonnes in the corresponding period a year earlier. This marked the lowest jewellery consumption for a first quarter since 2020, although its value rose by three percent on a year-on-year basis.
Interestingly, India's gold imports during the quarter increased by eight percent to 167.4 tonnes, reflecting underlying long-term interest. Meanwhile, gold recycling fell sharply by 32 percent to 26 tonnes, as consumers held onto their gold despite record prices.
The average quarterly gold price stood at Rs 79,633.4 per 10 grams in Q1 2025, significantly higher than the Rs 55,247.2 recorded in Q1 2024.
Globally, gold demand during the same period rose by one percent to 1,206 tonnes — the highest first-quarter demand recorded since 2019. WGC projects India’s total gold demand for the year 2025 to range between 700 and 800 tonnes.
