National News
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.
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.
National News
GJC welcomes RBI’s 25 basis point repo rate cut
Seen as a boost to economic growth and sectoral stability
The All India Gem and Jewellery Domestic Council (GJC) welcomes the Reserve Bank of India’s announcement of a 25 basis point cut in the key repo rate. This progressive and timely measure reflects the Hon’ble Prime Minister and the Finance Minister’s commitment to strengthening India’s economic environment.
The gem and jewellery sector, a vital contributor to employment and exports, will benefit significantly from this reduction in interest rates. Lower borrowing costs and improved liquidity will ease financial pressures, enhance business confidence, and support growth across the trade.
Rajesh Rokde, Chairman of GJC, said: “We sincerely appreciate the Government of India and the RBI for this supportive move. The repo rate cut will help the trade stabilise, sustain, and grow in the coming months. It is a welcome relief for our industry and will encourage investment, strengthen retail demand, and create a more conducive environment for expansion.”
Avinash Gupta, Vice Chairman of GJC, added: “This decision demonstrates the government’s proactive approach to nurturing economic growth. By easing financial pressures, the RBI has created an enabling environment for businesses in the gem and jewellery sector to flourish. We urge all our fellow members nationwide to take note of this positive development and utilise the benefit effectively, especially small and medium enterprises that form the backbone of our industry.”
The GJC believes this move will have a cascading positive impact across allied industries, empowering artisans, manufacturers, wholesalers, and retailers. With improved liquidity, jewellers will be better positioned to meet consumer demand during the upcoming festive and wedding seasons, further contributing to India’s economic momentum.
The Council reiterates its gratitude to the Government of India and the Reserve Bank of India for their continued support. This measure will strengthen the sector’s resilience and long-term growth, reinforcing India’s position as a global leader in gems and jewellery.
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