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Informist, Friday, Nov. 21, 2025

 

MUMBAI – Demand for gold jewellery in India is expected to be supported in the coming months because of the busy wedding season from November to March, Kavita Chacko, research head, India, at the World Gold Council, said in a report Friday. Investment interest in gold is likely to persist amid broadly bullish sentiment around the yellow metal, according to Chacko.

 

Festive demand around Diwali and Dhanteras, the country's peak gold-buying occasions, shined but has softened this month. "Market participants consistently highlighted that the strength was driven primarily by investment-oriented buying, particularly bars and coins, with some noting volume nearly doubling from a year ago," Chacko said. E-commerce platforms also saw solid sales and purchases of digital gold also rose. Unified Payments Interface data shows that digital gold purchases rose 62% month-on-month to INR 22 billion in October. Volumes rose 45% to 1.8 tonnes, Chacko added.

 

"Jewellery sales also held up well during the festive period, with retailers reporting healthy sales across both single-store and large multi-store formats, the latter benefitting from brand trust and promotional initiatives," Chacko said. Although jewellery volumes were softer due to high gold prices, the overall value of sales remained healthy, she said.

 

However, market activity has been subdued in November despite the onset of the wedding season. "Jewellers remain cautiously optimistic that the ongoing wedding season (November–March) will boost jewellery sales, given the expected large number of weddings," she said.

 

Domestic gold prices largely tracked international trend in October, but delivered even better results with 64% year-to-date growth. The higher gains in the domestic market was mainly because of the 3.3?preciation of the rupee, Chacko said.

 

Indian gold exchange-traded funds reported the sixth consecutive month of strong inflows in October. Net inflows in October were INR 77 billion, down 8% from the previous month but in line with WGC's estimates. Despite the moderation, the figure remained significantly higher than the year-to-date average of INR 82 billion. "The exceptional rise in gold prices likely drew investor attention, contributing to the strong inflows, while ongoing safe-haven demand further reinforced this trend," Chacko said. Net inflows have continued into November as well, reaching INR 24 billion in the first 17 days of the month.

 

Gold imports surged in October, marking the fourth consecutive month of growth in both value and volume terms. The increase occurred despite domestic gold prices touching record highs during the month, indicating resilient demand. Gold imports rose to $14.7 billion in October, the highest on record and up 53% from the previous month, Chacko said.  End

 

US$1 = INR 89.48

 

Reported by Ashutosh Pati

Edited by Ashish Shirke

 

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