Gold Consumption
India Oct-Dec gold demand tad down on weak jewellery sales, says WGC
This story was originally published at 11:36 IST on 5 February 2025
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--WGC: India Oct-Dec gold demand at 265.8 tn, down 0.2% on year
--WGC: India 2024 gold demand at 802.8 tn vs 761.0 tn in 2023
--WGC: India Oct-Dec net bullion imports 223.1 tn vs 225.3 tn a year ago
--WGC: India 2024 net gold import at 712.1 tn v 744 tn in 2023
--WGC: India gold dore import in Oct-Dec at 61.7 tn vs 51.3 tn year ago
--WGC: India 2024 gold dore import at 258.2 tn vs 220.9 tn in 2023
--WGC: India Oct-Dec gold demand for jewellery at 189.8 tn, down 4.9%
--WGC: India 2024 gold demand for jewellery 563.4 tn vs 575.8 tn in 2023
--WGC: India Oct-Dec gold recycling at 29.6 tn vs 25.6 tn a year ago
--WGC: India 2024 gold recycling at 114.3 tn vs 117.1 tn in 2023
--WGC: India's invest demand for gold 76.0 tn Oct-Dec, up 14% on year
--WGC: India 2024 invest demand for gold 239.4 tn v 185.2 tn in 2023
MUMBAI – India's demand for gold fell 0.2% on year to 265.8 tonnes in the December quarter, reflecting a fall in jewellery consumption during the period, the World Gold Council said in its Gold Demand Trends report released Wednesday. Overall, in 2024, yellow metal demand in India was 802.8 tonnes, up 5.5% on year from 761 tonnes in 2023. "This was facilitated by multiple record-high gold prices, a reduction in import duty, investment demand, and purchases related to weddings and festivals," Sachin Jain, regional chief executive officer India at World Gold Council, said.
In terms of value, India's gold demand during Oct-Dec surged 37% on year to INR 1.92 trillion compared with INR 1.40 trillion in the same period last year. For calendar year 2024, the value of gold demand in the country was INR 5.15 trillion, rising 31% from INR 3.92 trillion in 2023.
India's demand for gold jewellery decreased 4.9% on year to 189.8 tonnes in the December quarter. In 2024, demand for jewellery was down 2.2% at 563.4 tonnes from 575.8 tonnes in 2023. "The total jewellery demand decreased by 2% in 2024, despite the gold price reaching multiple record highs. This indicates the resilience of gold jewellery demand in India and highlights the effect of the duty cut in July as well as India's stronger economic growth compared to many other markets," Jain said.
Investment demand for the precious metal rose nearly 14% on year to 76 tonnes in Oct-Dec. At 239.2 tonnes, gold investment demand was up 29.3% on year in 2024. "There was consistent ETF (exchange traded fund) demand throughout the year, and the festival period of Dhanteras and Diwali in October/November stimulated buying in the final quarter. This was further enhanced in major metropolitan cities by e-commerce platforms offering rapid delivery of small gold investment bars and coins," Jain said.
India's net bullion imports fell slightly to 223.1 tonnes in Oct-Dec from 225.3 tonnes a year ago, while imports of gold dore rose to 61.7 tonnes from 51.3 tonnes. Net gold imports fell 4.3% to 712.1 tonnes in 2024 from 744 tonnes in 2023. The gold dore imports rose nearly 17% on year to 258.2 tonnes in 2024, the WGC said.
Gold reserves with the Reserve Bank of India increased by 73 tonnes in 2024, which is more than four times its gold purchases of 16 tonnes in 2023. At the end of 2024, RBI gold reserves totalled 876 tonnes, or 11% of total reserves, the report said.
Gold recycling rose to 29.6 tonnes in the December quarter from 25.6 tonnes a year ago. In 2024, gold recycled in India decreased to 114.3 tonnes from 117.1 tonnes in 2023, the report said.
"Our outlook for 2025 gold demand is between 700-800 tonnes. It is expected that gold jewellery demand will recover due to wedding-related purchases, provided there is some level of price stability," Jain said. "It is anticipated that the trend of robust gold investment demand will continue, with retail investors showing growing interest in gold ETFs, digital gold, and coins and bars." End
US$1 = INR 87.17
Reported by Sandeep Sinha
Edited by Tanima Banerjee
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