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India's Gold Demand Falls 11% Amidst Record Prices
29 Jan
Summary
- India's gold demand fell 11% to 710.9 tonnes in 2025.
- Record-high prices boosted gold demand value by 30%.
- Investment demand rose 26% in the fourth quarter of 2025.
In 2025, India's overall gold demand saw an 11% decrease, totaling 710.9 tonnes, with expectations for 2026 to range between 600 and 700 tonnes. This decline was significantly influenced by unprecedentedly high gold prices and evolving consumer purchasing habits.
Despite the reduction in physical demand, the value of gold transactions in India experienced a substantial 30% increase, amounting to ₹7,51,490 crore for the year. This surge was primarily driven by a 67% rise in average gold prices in January 2025 compared to the previous year.
Jewellery demand specifically dropped by 24% in volume, totaling 430.5 tonnes in 2025. However, its value saw a 12% increase. Conversely, investment demand emerged as a strong performer, rising 26% year-on-year in the fourth quarter of 2025, with its value more than doubling.
Looking ahead to 2026, gold demand in India is projected to be between 600 and 700 tonnes. This forecast is supported by persistent global uncertainties, a favorable interest rate environment, and central banks' ongoing diversification strategies, alongside robust investment demand.
