National News

WGC India gold market update: Investment upheld amid seasonal lull

Global factors supported prices early in June, but investor risk appetite limited gold’s rally

Published

7 months ago

July 27, 2025

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Gold prices lost momentum toward the end of June, closing the month with modest gains of 0.3% at US$3,287/oz. Earlier in the month, prices were supported by a weaker dollar, heightened geopolitical tensions, softer US Treasury yields, and increased inflows into gold ETFs. However, growing risk-on sentiment among investors capped any further upside.

Leading listed gems and jewellery companies delivered a strong performance in the April–June quarter, reporting a y/y revenue growth between 18% and 31%. This growth was largely price-led even as volumes remained flat or moderated. A ~32% y/y rise in gold prices during the quarter and key festivals and wedding demand during April-May boosted sales revenue.

Festive season is anticipated to drive a recovery in jewellery demand from mid-August, while investment buying is expected to remain steady.

Highlights:

Seasonal weakness weighs on jewellery sales; investment buying gains ground
Gold extends gains in July, remains top performer with y-t-d gains of 28%.
Listed jewellers post double-digit revenue growth in April -June quarter despite flat or lower volumes
Gold ETFs record second-highest monthly inflows in June
After a two-month pause, RBI makes a modest gold purchase in June
Gold imports drop to a 14-month low in June.

National News

Outstanding gold-backed loans surge by 128% from a year earlier

Published

7 hours ago

February 28, 2026

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India’s appetite for borrowing against gold is reshaping the country’s credit landscape. Outstanding gold-backed loans have surged 128% from a year earlier, crossing Rs.4 lakh crore ($48 billion) for the first time, according to data from the Reserve Bank of India. As of Jan. 31, loans secured by gold jewellery stood at Rs.4,00,517 crore, marking one of the fastest expansions in retail credit in recent years.

The boom in gold loans has helped propel overall non-food bank credit growth to 14.4% year-on-year. Personal loans now account for 34.5% of total bank lending, outpacing other segments and underscoring a broader shift toward consumer-driven credit expansion

Gold loans alone contributed roughly 9% of incremental bank credit during the period. Between January 2024 and January 2026, outstanding gold-backed credit rose by nearly Rs.3.1 lakh crore—an increase of about 338% over two years—more than quadrupling the size of the portfolio.

Two factors are driving the surge. First, gold prices have climbed roughly 152% over the past two years, increasing the collateral value of household holdings. Second, regulatory guidance requiring banks to classify loans secured by gold explicitly as gold loans has sharpened reporting and accelerated balance-sheet growth in the segment.

The trend highlights a distinctive feature of India’s financial system: households’ vast stock of physical gold, long viewed primarily as a store of wealth, is increasingly being mobilized as collateral for formal credit.

While personal lending and credit to nonbank financial companies within the services sector continue to expand rapidly, industrial credit remains uneven. Loans to micro, small and medium enterprises are growing steadily, but borrowing by large corporations has stayed relatively muted.

Since March 21, 2025, banks have added Rs.21.8 lakh crore to their non-food loan books, translating into 12% growth for the financial year to date. Yet it is gold—rather than factories or infrastructure—that is emerging as one of the most dynamic engines of India’s current credit cycle.