India’s gold demand witnessed a notable divergence in the July–September 2025 quarter, as soaring prices weighed on jewellery purchases even while the total value of demand surged, according to the latest data from the World Gold Council (WGC).

Total gold demand fell 16% year-on-year to 209.4 tonnes, compared to 248.3 tonnes in the same quarter last year. The contraction was primarily led by the 31% decline in jewellery demand by volume, reflecting consumer caution amid record-high prices that consistently hovered near historic peaks during the quarter.

However, despite the slump in volumes, the value of gold demand rose sharply by 23%, reaching Rs.2,03,240 crore, up from Rs.1,65,380 crore a year earlier. This surge underscores gold’s resilience as an asset class, as investors continued to view it as a stable store of value amid economic uncertainty and market volatility.

According to the WGC, the price-sensitive Indian consumer responded by opting for lighter-weight jewellery, token purchases, and increased investment in bars, coins, and ETFs. The report also noted that the outlook for the October–December festive quarter remains positive, supported by improved sentiment, the onset of the wedding season, and expectations of more stable gold prices.

Analysts suggest that while jewellery demand may take time to normalize, the strong investment appetite signals a deeper structural shift — one that reaffirms gold’s enduring appeal as both a cultural and financial asset in Indian households.