More Stories

Informist, Wednesday, Dec. 17, 2025

 

MUMBAI – Despite the ongoing wedding season in India, gold jewellery volumes are lower than last year as higher prices and affordability are weighing on consumption, according to World Gold Council's India Research Head Kavita Chacko. Gold jewellery demand is likely to remain subdued until mid-January, even as investment interest in the yellow metal is expected to remain sustained, Chacko said.

 

Gold demand trends in the country continue to diverge, as sustained strength in investment demand is offset by weakness in the jewellery segment. While value growth in the jewellery sector remains positive due to higher prices, "volumes – particularly in the mid- and small-ticket segments that underpin mass demand – remain pressured," Chacko said in a report Wednesday. Demand in the luxury segment remains strong, but it is insufficient to offset the broader volume weakness.

 

"This divergence is also evident across the retail landscape. Large and medium-sized jewellers continue to report relatively healthy sales, supported by higher ticket prices and need-based wedding purchases, whereas small and standalone jewellers are under pressure," Chacko said. Meanwhile, demand for gold investment products, particularly bars and coins, remains strong. The preference towards investment-focused buying is reflected in the volume of gold imports, which rose sharply to 340 tonnes between July and October, compared to 240 tonnes between January and June, Chacko said.

 

International gold prices extended their sharp rally in November, ending the month with gains of 4.5% and a further 3.7% to $4,347 per ounce as of Friday, taking this year's gains to 67%. Domestic gold prices outperformed, rising 73% this year, aided by a 5.6?preciation in the rupee against the dollar.

 

Inflows into Indian gold exchange-traded funds remained strong in November, albeit at a slower pace than the preceding two months. Net inflows were at INR 37.4 billion, around half of the previous month but still comfortably above the average monthly inflows of INR 27.6 billion during the first 10 months of the year. Gold holdings rose by around 3 tonnes last month, taking total holdings to 86.4 tonnes.

 

"Investor interest in gold ETFs continues to strengthen, as reflected in sustained inflows and the broadening of investor participation. Over the first 11 months of 2025, cumulative net inflows reached a record INR 313bn (INR 313 billion), while holdings rose by 28.6t (28.6 tonnes) – the highest annual addition on record and nearly double that of the previous year," Chacko said. Investor participation has expanded significantly this year, with 3.4 million new accounts or folios added in Jan-Nov, representing a 152% on-year increase and taking total accounts to 9.8 million, she said.

 

The Reserve Bank of India's gold accumulation has moderated sharply this year, showing a clear departure from the aggressive buying seen in 2024. "Gold has been purchased during just four months this year, with no additions since September, resulting in net purchases of just 4t (4 tonnes) compared with 72.6t (72.6 tonnes) last year," Chacko said. The central bank's total gold holdings stand at a record 880.2 tonnes.

 

Gold imports declined significantly last month, falling 73% from the previous month and 59% on-year to $4 billion, following three consecutive months of growth. "This sharp decrease can be attributed to the moderation in post-festive demand. Import volumes for the month are estimated between 32t (32 tonnes) and 40t (40 tonnes)," Chacko said.  End

 

US$1 = INR 90.38

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

 

Reported by Ashutosh Pati

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.