Global gold demand rose 1% year-on-year to 1,206 tonnes in the January–March 2025 quarter, marking the highest first-quarter level since 2019, according to the World Gold Council (WGC). However, India—one of the world’s largest gold consumers—saw a 15% decline in overall gold demand during the same period, dropping to 118.1 tonnes, largely due to soaring gold prices.

Despite the volume drop, the value of gold demand in India surged 22% as retail prices jumped to ₹94,030 per 10 grams during the March quarter. Prices climbed even higher in April, breaching the ₹1 lakh per 10 grams mark in retail markets, driven by international gold prices reaching an unprecedented $3,500 per ounce.

The WGC has forecast India’s gold demand for the full year at 700 to 800 tonnes, despite affordability pressures. The average price during Q1 2025 was ₹79,633.4 per 10 grams, a significant increase from ₹55,247.2 in Q1 2024.

India’s investment demand for gold showed resilience, rising 7% to 46.7 tonnes, compared to 43.6 tonnes in the same period last year. In contrast, jewellery demand dropped sharply by 25% to 71.4 tonnes, down from 95.5 tonnes—the lowest volume since 2020. However, jewellery demand value still rose 3% year-on-year due to the elevated prices.

Meanwhile, gold imports in India rose 8% to 167.4 tonnes, while recycling volumes fell 32% to 26 tonnes as consumers preferred to hold onto their gold assets amid rising prices.

“Elevated prices have impacted affordability. Yet, the enduring cultural significance of gold—especially ahead of Akshaya Tritiya and the upcoming wedding season—continues to support buying sentiment,” said Sachin Jain, WGC India CEO.

As Akshaya Tritiya approaches, traditionally a peak time for gold purchases, consumers are adjusting their buying patterns. Many are opting for lighter jewellery or postponing purchases in hopes of a price correction. Still, experts believe gold’s dual appeal as a cultural staple and a reliable investment will sustain positive momentum in demand.