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Gold jewellery demand  gaining momentum as festive, wedding season approaches

Gold jewellery demand is gaining momentum with the onset of the festive and wedding season. Strong cultural sentiment, rising disposable income, and seasonal buying are expected to boost sales across India.

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WGC India Gold Market Update reports that as  the festive and wedding season approaches there are signs that gold jewellery demand is gaining momentum, and with investment interest holding firm, overall gold demand could receive a boost.

Highlights from the report:

  • Gold steady with gains in August; discounts narrow in India
  • Retailers gear up for festive boost, ramping up inventories
  • Positive inflows and one new fund entry drive continued gold ETF growth
  • RBI holds steady on gold reserves in July
  • July’s gold imports surge, bracing for festive demand.

Overall price movement has remained range-bound. Despite short-term fluctuations, gold continues to outperform in 2025, delivering a 28% return in US dollar terms year-to-date.

Price Trends:
International gold prices rose over 1% in the first half of August to US$3,335/oz, extending July’s modest gains. Prices remain range-bound, influenced by factors such as a weaker US dollar, Fed rate cut expectations, inflation concerns, and tariff developments. Year-to-date, gold has delivered a strong 28% return in US dollar terms. In India, a weaker rupee has amplified gains, with domestic prices up 31% YTD to INR 99,665/10g. Discounts in the domestic market narrowed sharply in August, reflecting improved demand.

Jewellery Demand:
The jewellery sector anticipates a rebound during the festive season. At IIJS 2025, manufacturers reported stronger-than-expected orders, with retailers restocking in anticipation of robust sales. Stability in prices has improved consumer sentiment, while manufacturers are increasingly offering lightweight jewellery to appeal to price-sensitive buyers.

Investment Flows:
Indian gold ETFs witnessed a third straight month of inflows in July, totalling INR12.6bn, though at a slower pace than June. Assets under management rose 96% y/y to INR676bn, with holdings reaching 68t. Investor participation remains strong, with rising folios and the launch of new funds.

Imports and Reserves:
Gold imports surged to US$4bn in July, suggesting stocking ahead of the festive season. Meanwhile, RBI’s gold reserves remained unchanged at 880t, reflecting a cautious stance amid high prices.

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Belgian Consul General H. E. Mr. Pierre Stverlynck Graces BDB Annual Day  

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  • Event marks 42 years of Incorporation and 16 years of Operations
  • Recently-appointed Consul-General’s first visit to the Bourse helps strengthen a century-old bond
  • Long service awards presented to outstanding employees

Bharat Diamond Bourse today marked 42 years of incorporation and 16 years since the commencement of operations at the BDB Complex in BKC with a special programme graced by H. E. Pierre Stverlynck – Consul General of Belgium in Mumbai as Chief Guest and a number of leading diamantaires.

The function was organised to celebrate the crucial roles played both by the visionaries who conceptualised the need for a centralised infrastructure to boost the diamond trade over four decades ago, and the employees who have run the daily operations in a highly efficient and professional manner. 

In his Welcome Address, BDB Vice President, Mehul Shah explained the significance of celebrating twin milestones – 42 years of incorporation and 16 years of operations. He said:

“BDB began with a vision and is now the world’s largest operational bourse, and a symbol of India’s leadership in the diamond world and excellence in every aspect of operations.”

He added, “It is significant that the Consul General of Belgium is with us on this special occasion. Antwerp and Mumbai have a very close relationship, going back more than 100 years. Today the two cities have bonds based on trust, trade and friendship. We are committed to strengthening this bond over the next century as well.” 

Congratulating the awardees he said that members may be the owners, but it is the staff who run the complex and have helped build it as the “best of the best” centres for diamonds. “Personal integrity combined with hi-tech surveillance have made BDB one of the safest places in the world,” he explained, and urged all present never to forget that “it is the soldiers who fight and win the wars.” Mr Shah offered compliments to all the awardees and congratulated Team BDB. 

Speaking on the occasion, Anoop Mehta, President BDB, welcomed Mr Stverlynck who has recently assumed charge as Consul General of Belgium in Mumbai.

“We are sure that this will be the first of many visits to our Bourse,” he said, noting that the Consulate is the nearest neighbour of the complex. 

“The BDB leadership has always enjoyed a very special relationship with the Belgian consulate,” he added, “built on the longstanding bonds between the diamond industry in our two countries.”

Mr Mehta said it was heartening that so many employees had remained loyal to the BDB for multiple years, and urged all gathered to reach out through their department heads to put forward suggestions for further changes and improvements

Mr Stverlynck, who was on his first visit to the Bourse after assuming charge as Consul General, said he was extremely impressed with the facilities available for exporters within the complex. Assuring the trade of cooperation and support, he said he was happy to be personally present to celebrate such a remarkable institution as BDB that has become a key pillar of the India diamond industry.

Congratulating the leadership for its role in steering the bourse, as well as those employees who had received long service awards, Mr. Stverlynck said:

“The consolidated knowledge and experience of so many from those at the top to a number of others who contributed in various ways, is an asset to the industry.”

Special long service awards were presented to employees who completed special milestones during the year. These included 30-year, 25-, 15-, 10- and 5-year service awards to a few employees. 

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