India`s Gold Demand to Moderate in 2025 Amid Price Surge by Amit Gupta, Kedia Advisory
India's gold demand in 2025 is expected to moderate from the previous year's nine-year peak, as soaring prices dampen jewellery demand, despite an increase in investment demand. According to the World Gold Council (WGC), the demand could range between 700-800 metric tons, down from 802.8 tons in 2024. Gold prices have surged significantly, hitting a record high of 84,399 rupees per 10 grams in early 2025, marking a 10% rise this year following a 21% increase in 2024. While jewellery demand may face a slowdown due to higher prices, investment demand continues to rise, with a growing interest in gold ETFs, digital gold, and coins.
Key Highlights
* India's 2025 gold demand is expected to moderate from last year’s peak.
* Gold prices hit a record high of 84,399 rupees per 10 grams.
* Jewellery demand may be impacted by rising gold prices.
* Investment demand, especially in gold ETFs and coins, continues to grow.
* Total gold demand in 2025 is forecast to be between 700-800 tons.
India's gold demand in 2025 is projected to cool after hitting a nine-year high in 2024, driven by a dramatic surge in prices. Domestic gold prices recently peaked at a record-breaking 84,399 rupees per 10 grams, up by 10% in 2025, following a significant 21% rise in 2024. Such price escalations are expected to dampen jewellery demand, traditionally the largest segment of India’s gold consumption.
Historically, when gold prices rise sharply, jewellery purchases are often impacted first. As gold becomes more expensive, households, which typically work within a set budget for jewellery, may find it difficult to absorb the rising prices. This trend could result in reduced jewellery demand in 2025. However, despite this, the growing appeal of gold as an investment asset is driving higher investment demand. With returns from gold increasing, investors are flocking to gold ETFs, digital gold, and coins, helping offset the dip in jewellery demand.
The World Gold Council (WGC) forecasts that India’s total gold demand in 2025 will be between 700-800 metric tons, slightly lower than 802.8 tons in 2024. Despite this, India’s status as the world’s largest consumer of gold remains strong, with investment demand poised to keep growing.
Finally
While gold jewellery demand may slow due to high prices, the investment sector is expected to continue driving India's gold consumption in 2025.
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