WGC Report
India's Jul-Sept gold demand dn 16% YoY as prices surge to record high - WGC
This story was originally published at 11:50 IST on 30 October 2025
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--WGC: India Jul-Sept gold demand at 209.4 tn, down 16% on year
--CONTEXT: World Gold Council releases Gold Demand Trends report for Jul-Sept
--WGC: India Jul-Sept bullion imports 194.6 tn vs 308.2 tn a year ago
--WGC: India gold dore imports in Jul-Sept at 71.3 tn vs 96.6 tn yr ago
--WGC: India Jul-Sept gold demand for jewellery at 117.7 tn, down 31% on yr
--WGC: India Jul-Sept gold recycling at 21.8 tn vs 23.4 tn year ago
--WGC: India Jul-Sept investment demand for gold 91.6 tn vs 76.7 tn year ago
MUMBAI – India's gold demand during Jul-Sept fell 16% on year to 209.4 tonnes amid a significant reduction in jewellery demand as prices of the yellow metal surged to record high, the World Gold Council said in its Gold Demand Trends report released Thursday. The country's gold demand for jewellery during the quarter was 117.7 tonnes, down 31% on year.
"India had its weakest third quarter for jewellery consumption since 2020, at 118t (tonnes), reflecting the surging local gold price, which surpassed the Rs 117,000/10g (grams) level during the quarter," the report read. Also, the rise in gold prices has led demand to shift away from jewellery towards lower-margin and small investment products. The country's investment demand during the quarter rose by a sharp 20% on year to 91.6 tonnes.
The value measure of demand was more resilient, it said. In value terms, the jewellery demand was at INR 1,143 billion, on a par with the year-ago period when demand jumped to a nine-year high, following a cut in Indian import duties. The value of demand year-to-date has reached a record of INR 2,513 billion, or $29 billion.
The domestic gold price rise was magnified by the depreciation in local currency during the quarter, the council said. "This, and a lack of major festivals and weddings, kept a lid on jewellery buying during July and August. Demand was ignited in September, however; the accelerating price rally triggered consumers to purchase before prices rose further. Anecdotally, the end of Shradh (a 15-day inauspicious period for gold buying) on 21st September saw a rush of demand."
The rise in gold prices has led to an increased acceptance of 18 carat plain jewellery at the expense of more traditional 22 carat jewellery, across many parts of the country. "But demand from wealthier consumers has so far held firm, reflected in relatively strong sales of high-value jewellery items."
During the September quarter, Indian consumers continued to use their gold jewellery as collateral for loans. "Data suggests that, so far this year, consumers have pledged at least 220t (tonnes) of gold jewellery in this way, helping to keep a lid on the domestic supply of recycled gold." The total gold recycled in India during the period was 21.8 tonnes, down 7% on year from 23.4 tonnes.
On the supply side, India has imported 194.6 tonnes of gold, down 37% on year. Gold dore imports by the country during the period were at 71.3 tonnes, down from 96.6 tonnes seen in the year-ago period.
"We anticipate robust demand across all categories, from traditional jewellery to investment products, as the market gears up for a vibrant festive and wedding season," the council's regional Chief Executive Officer for India, Sachin Jain, said in a note. "With total gold demand from January to September at approximately 462.4 tonnes, we anticipate full-year demand between 600 and 700 tonnes, more towards higher end of range." End
US$1 = INR 88.50
Reported by J. Navya Sruthi
Edited by Deepshikha Bhardwaj
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