India’s gold consumption is expected to moderate in 2025, following a record high in 2024, as surging prices dampen jewellery demand, although investment demand remains strong, according to the World Gold Council (WGC). The demand is projected to range between 700 and 800 metric tonnes, a drop from last year’s 802.8 tonnes—the highest level since 2015.

As gold prices rise, jewellery purchases tend to decrease, with consumers adjusting their budgets in response to the higher costs. Domestic gold prices recently hit a record high of Rs 84,399 ($968.62) per 10 grams, reflecting a 10% increase in 2025 after a 21% rise in 2024.

However, the surge in gold prices has bolstered investment demand, particularly in gold ETFs, digital gold, and coins and bars. Investment demand rose 29% in 2024, reaching an 11-year high of 239.4 tonnes, and is expected to continue growing in 2025.

Jewellery demand, which makes up nearly 70% of India’s total gold consumption, will likely be impacted by higher prices. Despite this, strong interest in gold as an investment is expected to persist.