Gold Trend
India Jan-Mar gold demand falls 15% on yr on weak jewellery sales, says WGC
This story was originally published at 11:35 IST on 30 April 2025
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--WGC: India Jan-Mar gold demand at 118.1 tn, down 15% on year
--WGC: India Jan-Mar net bullion imports 167.4 tn vs 155.4 tn year ago
--WGC: India gold dore import in Jan-Mar at 33 tn vs 47.3 tn year ago
--WGC: India Jan-Mar demand for gold jewellery at 71.4 tn, down 25% on year
--WGC: India Jan-Mar gold recycling at 26 tn vs 38.3 tn year ago
--WGC: India's investment demand for gold 46.7 tn in Jan-Mar, up 7% on year
MUMBAI – India's demand for gold fell 15% on year to 118.1 tonnes in the March quarter, reflecting a fall in jewellery consumption during the period, the World Gold Council said in its Gold Demand Trends report released Wednesday. Demand for the yellow metal was 139.0 tonnes in the same period last year.
"The enduring cultural and seasonal significance of gold, especially ahead of key occasions like Akshaya Tritiya and the upcoming wedding season, continues to support consumer buying sentiment," Sachin Jain, regional chief executive officer India at World Gold Council, said.
In terms of value, India's gold demand during Jan-Mar rose 22% on year to INR 940.30 billion compared with INR 768.20 trillion in the same period last year.
India's demand for gold jewellery decreased 25% on year to 71.4 tonnes in the March quarter, the lowest volume since 2020, the value of demand was up 3% on year, the global body said. "The record gold price, which broke through the key INR 90,000 per 10-gram threshold for the first time, impacted affordability," it said.
"The decline in volume was offset by a 22% surge in the overall value of demand, propelled by soaring global gold prices which have risen 25% since January 2025. This historic rally of gold prices reaching a record high of INR 100,000 per 10 grams in India, has further reinforced the metal's appeal as a safe-haven asset among Indian consumers," Jain said.
Wedding-related demand was relatively resilient, given the essential nature of such purchases. "Gold retailers are optimistic about favourable buying behaviour through the rest of the festive season, despite ongoing tariff-related uncertainties," Jain said.
During the March quarter, investment demand for bullion was up 7% on year at 46.7 tonnes, driven by growing interest in gold exchange-traded funds, digital gold, coins, and bars. "This was sharply lower compared with the previous two very strong quarters, but Jan-Mar (Q1) typically sees a drop compared with wedding- and festival-driven fourth-quarter buying," the WGC said.
The total assets under management of gold exchange-traded funds was 64.5 tonnes till March. India's net bullion imports rose to 167.4 tonnes in Jan-Mar from 155.4 tonnes a year ago, while imports of gold dore fell to 33 tonnes from 47.3 tonnes.
Gold reserves with the Reserve Bank of India increased 3 tonnes to 879.6 tonnes during the March quarter, the report said. Buying by the central bank has been less consistent in recent months than it was in 2024, when the RBI bought gold every month except December, the report said.
Gold recycling fell to 26 tonnes in the March quarter from 38.3 tonnes a year ago. However, there was a jump in exchange of old gold jewellery for new, and in the use of gold jewellery as collateral for loans – a common reaction to rapidly rising gold prices, it said.
"With cultural affinity, festive momentum, and resilient investment interest, India's gold story is poised to shine even brighter in the months ahead. Our overall forecast for Indian gold demand for 2025 is between 700-800 tonnes," Jain said. End
US$1 = INR 85.05
Reported by Sandeep Sinha
Edited by Tanima Banerjee
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