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Informist, Monday, Jan. 19, 2026

 

MUMBAI – Demand for gold remains resilient in India with investment demand likely to be the key driver in the coming months, according to Kavita Chacko, research head, India, at the World Gold Council. Festival and wedding related purchases could lend incremental support to demand for gold jewellery, Chacko said.

 

"Market feedback and interactions with trade participants indicate that the domestic gold demand environment remains resilient, though measured," Chacko said. Surging gold prices have tempered purchase volumes of gold jewellery and average ticket sizes as consumers adhere to fixed budgets and move towards lightweight jewellery with lower making charges. While 22 carat gold jewellery remains the preferred choice, demand for lower purity jewellery, particularly 18- and 14-carat, has seen an uptick.

 

"Needs-based wedding purchases remain steady, providing key support to overall jewellery demand. Jewellery exchange activity continues to be robust, highlighting value-conscious consumer behaviour: some retailers report that over 40% of their jewellery sales are driven by old jewellery exchange," Chacko said. Meanwhile, investment demand remains strong and is reportedly drawing in new buyers who are attracted by the gold price momentum.

 

Listed jewellery retailers—-Titan Co. Ltd., Kalyan Jewellers, PN Gadgil Jewellers, PC Jewellers, and Senco Gold—-reported strong revenue growth of 37-51% in the December quarter supported by festival and wedding demand, Chacko said. "Growth, however, was largely price-led: a price rise of more than 15% during the quarter boosted average selling prices and offset the decline in volume," Chacko added.

 

Sales momentum reportedly remained resilient even after the main festival period and despite the volatility in gold prices. Aggressive store additions, targeted marketing campaigns, gold exchange and promotional offers, and new design launches supported performance. This positive revenue momentum is expected to continue in the March quarter.

 

Gold prices have extended their uptrend in 2026, scaling fresh record highs. International gold prices rose nearly 6% in the first 13 days of the new year, Chacko said. "The sustained uptrend has been largely driven by elevated geopolitical tensions, persistent policy uncertainty, and resilient safe-haven demand," she added.

 

Indian gold exchange-traded funds ended 2025 on a strong note, with net inflows reaching an all-tme high of INR 116 billion in December, Chacko said citing data from the Association of Mutual Funds in India. Cumulative holdings rose by a record 8.6 tonnes in December, lifting the total to a historic high of 95 tonnes. This marked the eighth straight month of net additions. "Investor appetite was supported by muted equity market performance and sustained gold price momentum, reinforcing the role of gold ETFs as a preferred portfolio diversifier," Chacko said.

 

Purchases of digital gold through the Unified Payments Interface rose steadily through 2025. Transaction values rose to INR 21 billion in December from INR 8 billion in January, a near three-fold increase, with an estimated purchase of 13.5 tonnes over the year. This growth has been supported by the ease of purchase, participation from a broader and newer set of buyers, and the expanding range of servie providers including jewellers and fintech platforms, Chacko said.

 

"Activity rebounded after a brief dip in November following an advisory from the Securities and Exchange Board of India, which noted that digital gold products are not regulated under existing market frameworks," Chacko added.

 

The Reserve Bank of India's gold purchases in 2025 fell to lowest in eight years at 4 tonnes, a sharp decline from the 72.6 tonnes acquired in 2024. Despite this slowdown, RBI's total gold holdings stand at a record 880.2 tonnes. "...we believe this points to a measured approach in reserve management, with higher gold prices and the increased share of gold in foreign exchange reserves likely influencing the pace of additional purchases," Chacko said.

 

India's gold imports in value terms rose 3% month-on-month to $4.1 billion in December. However, imports were 12% lower on year. Gold imports are estimated to be in the range of 35-40 tonnes in December, down from 48 tonnes in November. "Notably, monthly imports have moderated significantly from the elevated levels seen between September and October ahead of the festive season, which averaged around 115t (tonnes) and US$12bn (billion) in value," Chacko said. For the full year, gold import bill was at $59 billion, broadly steady from the previous year. However, import volumes fell over 20%.  End

 

US$1 = INR 90.95

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Ashutosh Pati

Edited by Akul Nishant Akhoury

 

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