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Informist, Thursday, Jan. 29, 2026

MUMBAI – India's demand for gold is projected to fall in 2026 to around 600-700 tonnes, a continued decline from 710.9 tonnes in 2025 when it was down 11% on year, as record high prices dampen demand for gold jewellery. However, investment demand for the yellow metal is expected to remain robust, driven by rising awareness of gold's portfolio benefits, according to the World Gold Council. 

India's gold demand during Oct-Dec fell 9% on year to 241.3 tonnes amid a significant reduction in demand for gold jewellery despite the wedding season, the council said in its Gold Demand Trends report released Thursday. Demand for gold jewellery in the country fell 24% on year to 430.5 tonnes in 2025 but rose 12% in value terms to INR 4.5 trillion. During Oct-Dec, gold jewellery demand in India was down 23% in volume terms to 145.3 tonnes but up 26% in value terms to INR 1.8 trillion.

"Sentiment towards gold jewellery remains very strong in India, but consumers typically have fixed budgets for such spending, and this acts as a brake on the quantity of gold they can buy – particularly given the 74% rise in the local gold price over the year," the council said in a report.

However, investment demand for the yellow metal remained robust, rising 26% on year to 96.0 tonnes in Oct-Dec, while its value more than doubled to INR 1.2 trillion. "This strong performance highlights a growing strategic commitment among Indian investors to gold as a long-term portfolio hedge," Sachin Jain, regional chief executive officer, India, World Gold Council said.

"India's gold market in Q4 2025 clearly reflected the dual impact of record-high prices and shifting consumer behaviour," Jain said. The moderation in volumes was, however, more than offset by a sharp rise in value, with overall gold demand increasing 49% on year to INR 3.03 trillion during Oct-Dec, Jain said. Total demand for gold in value terms rose 30% on year to INR 7.5 trillion in 2025.

On the supply side, India's gold imports fell 17% on year to 663.7 tonnes in 2025 while imports were down 5% on year in Oct-Dec at 215.1 tonnes. In 2025, total gold recycled in the country fell 19% on year to 92.7 tonnes. Total gold recycled in Oct-Dec fell 27% on year to 21.7 tonnes, suggesting that consumers are choosing to retain their gold holdings despite record prices. This behaviour further reinforces gold's role as a trusted store of wealth, especially during periods of economic and market uncertainty, Jain said.  End

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

Reported by Ashutosh Pati

Edited by Deepshikha Bhardwaj

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