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WGC India’s gold market update: Mixed demand

Gold pauses in May, shines again in June

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Gold prices in May saw a pause in the uptrend after four consecutive months of gains, ending the month nearly flat just below US$3,300/oz.2 Trading was largely range bound, with gains capped by global gold ETF outflows and the strong returns of April. At the same time, tariff-related policy risk, a weaker US dollar, and rising inflation expectations supported prices. Gold regained momentum in June, rising 5% month-to-date to US$3,435/oz,3 driven by the flare-up in geo-political tensions following the Israel-Iran attacks and a rebound in ETF demand. Year-to-date, gold remains a standout performer, up 32% in USD terms.  

Domestic gold prices broadly followed international trends, closing May 1% higher and moving in the INR92,000–97,000/10g range.4 So far in June, prices have risen by 4%, reaching INR98,732/10g.5 Domestic prices however, have continued to trade at a discount to international benchmarks (after adjusting for exchange rate and taxes),6 primarily due to subdued jewellery demand. The average discount has widened significantly – from US$12/oz in mid-March to over US$38/oz by 13 June.7

Soft jewellery sales, healthy investment and credit flows

Jewellery demand has been underwhelming following the April-May wedding season. According to market reports, softer prices in May boosted store footfalls, particularly for larger retailers offering promotional campaigns. Despite this, demand remained subdued and was largely centred around need-based purchases.

In contrast, physical investment demand for gold bars and coins, which account for nearly 30% of consumer demand, has been sustained, supported by positive price momentum. There has been a steady and gradual uptick in demand for these products, underpinned by expectations of further increase in gold prices and relatively lower fabrication costs. Notably, demand has been concentrated in lower-grammage coins, particularly those weighing less than 10g.

Anecdotal reports suggest that consumers are increasingly monetising their existing gold jewellery holding, either by exchanging them for new pieces, liquidating them, or using them as collateral for loans. The RBI’s recent relaxation of norms for loans against gold jewellery is expected to further support this trend.8 As of end-April lending by commercial banks in this segment had surged nearly 120% y/y to INR2,230bn (US$26bn).

Gold ETF inflows resume  

Indian gold ETFs regained momentum in May, recording net inflows of INR2.9bn (US$34mn) after two consecutive months of outflows. The inflows, though modest compared to the 10-month average of INR15.3bn (US$181mn) up to February, exceeded our initial estimate – based on early data,9 and  reflected renewed investor interest. This was likely supported by sustained safe – haven demand amid ongoing geopolitical turmoil and market volatility.  Preliminary data indicates that the trend of net inflows persisted through the first half of June.

According to data from the Association of Mutual Funds in India (AMFI), the cumulative assets under management (AUM) of the 20 gold ETFs rose to INR624bn (US$7.3bn), marking a 97% y/y and 2% m/m increase. Total gold holdings inched up to 64.65t, with an addition of 0.2t during the month. Investor participation also continued to grow, with 0.22mn new accounts (or folios) added during the month, bringing the total number to 7.3mn, a 38% y/y growth, signalling continued and broadening investor interest in gold as a financial asset.  

RBI extends gold buying pause

The RBI has stayed on the sidelines of gold buying since March, adding just 3.4t so far this year,10 sharply lower than the 30.6t purchased during the same period last year. This pause could likely be linked to the steep rise in gold prices since the beginning of the year, a trend we have observed among some other central banks too.

However, despite the lower purchases, India’s gold reserves have climbed to a record 879.6t, now accounting for 12.3% of total foreign exchange reserves, up from 8.7% a year ago. This marks the highest ever share of gold in the reserves, underscoring its growing strategic role in the RBI’s reserve mix.

Imports soften further 

Gold imports in May totalled US$2.5bn, marking a 13% y/y decline and an 18% drop from one month ago. This represents the second consecutive month of decline and aligns with a softer domestic demand environment. Based on our estimates, import volumes for the month were in the range of 27t to 32t, down from 35t in April and significantly lower than the 41t recorded in May 2024.

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Platinum Guild International (PGI) – India’s 8th  Platinum Buyer-Seller Meet all set to spotlight success, growth, and innovation

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Platinum Guild International (PGI) – India is pleased to announce the 8th edition of its annual flagship event, the Platinum Buyer-Seller MeetScheduled to take place on June 26th and 27th, 2025, in Kochi, this marquee industry event will bring together leading retail and manufacturing partners across India’s platinum jewellery industry to showcase innovation, foster strategic partnerships, and drive category growth in a dynamic and evolving retail ecosystem.

This year’s theme focuses on success, innovation and growth, with a clear goal of establishing platinum as the metal of choice for modern Indian consumers. The event will convene 14 of the country’s most prominent platinum jewellery manufacturers and a robust group of 60 leading retail partners from across PGI’s vast network, setting the stage for collaborative expansion across the platinum jewellery landscape. Designed as a catalyst for forward-looking partnerships, the meet will spotlight new opportunities for platinum jewellery across PGI’s branded categories—Platinum Love Bands, Platinum Evara, and Men of Platinum.

Set against the backdrop of shifting global markets and growing interest from younger, new-age consumers, the 2025 edition aims to scale category demand through bolder design narratives, differentiated product innovation, and powerful, insight-led marketing programs. The overarching objective is to reinforce platinum’s relevance and position as a meaningful, competitive, and preferred metal of choice across an evolving range of contemporary consumer occasions.

Commenting on the significance of the upcoming Platinum Buyer-Seller Meet, Vaishali Banerjee, Managing Director, Platinum Guild International (India & Middle East) and Head of Global Market Development, Platinum Guild International said: “The Platinum Buyer-Seller Meet was created to enable industry-wide growth by highlighting key innovations and building strong partnerships across the platinum jewellery ecosystem. As we step into the 8th edition, we’re seeing notable shifts in consumer behaviour, where platinum is gaining greater mindshare- driven by evolving preferences and favourable pricing trends. This year, our focus is on powering the next phase of growth through compelling design language and impactful market storytelling that expands both relevance and occasions for platinum jewellery.”

Dr. Joy Alukkas, Chairman, Joyalukkas Group said, “The Platinum Buyer-Seller Meet continues to be a vital platform for shaping the future of platinum jewellery. Each year, it inspires us with innovation and insight, helping us align our collections with the evolving preferences of today’s consumers. We are excited to discover this year’s creations and look forward to presenting them to our customers in time for the festive and wedding seasons ahead.” 

joy allukas

Dr. Saurabh Gadgil, Chairman & Managing Director, PNG Jewellers said, “Platinum jewellery is fast becoming the go-to choice for self-purchase and milestone gifting, particularly with younger generations and new age consumers. The Platinum Buyer-Seller Meet gives us a curated view of what resonates best with consumers this season and we look forward to yet another exciting edition right before the onset of the festive season!”

 Suvankar Sen, MD & CEO, Senco Gold & Diamonds said, “With the evolving macro-economic shifts and global market movements, we are seeing more consumers shifting up to platinum due to its competitive pricing, coupled with its assurance of rarity, and purity. This year’s Platinum Buyer-Seller Meet comes at a pivotal time to help us meet this consumer interest with the right collections and ranges to meet this demand across price points.”

 Nirav Bhansali – CEO, Prism Jewellery said: “Our focus has been on crafting innovative platinum jewellery that brings out the brilliance of studded jewellery. From new silhouettes to contemporary styling, we’re excited to showcase women’s pieces that break away from templated designs, and elevate platinum’s design language at this year’s Buyer-Seller Meet.”

 Avinash Pahuja, Director, ORO Precious Metals Pvt. Ltd. shared: “We’ve seen a clear shift among younger consumers — a growing preference for platinum, drawn by its understated luxury and differentiated identity. The Platinum Buyer-Seller Meet is an exciting platform for us to introduce our latest collections: a bold exploration of platinum, fused with engineered techniques to shape up contemporary designs. This range reflects our belief that the future of platinum lies not just in purity, but in innovation. At ORO, we engineer every piece with precision — and this new collection is an embodiment of that philosophy. We’re looking forward to having our partners experience these creations firsthand, to touch the detail, feel the quality, and engage in meaningful conversations. Like every year, it’s not just about presenting our work — it’s about learning, exchanging ideas, and shaping what comes next.”

Nirmal Rawal, Managing Director, BN Jewellers elaborated: “The Platinum Buyer-Seller Meet has grown into a space to showcase forward-thinking design and innovation when it comes to platinum jewellery. This year, we’re excited to introduce our take on bi-metal and modular platinum jewellery that we believe will break new ground.” 

K Srinivasan, Founder and Managing Director, Emerald Jewel Industry India said: “Innovation is at the heart of everything we do. We continue to invest in advanced technology and global machinery to push what’s possible in platinum design and manufacturing. The Platinum Buyer-Seller Meet gives us a powerful platform to showcase this innovation and co-create what the future of platinum jewellery could look like across markets.”

Madhu Jethwani Dhabuwala, CEO – Jewellery, India & Middle East at Jewelex India Pvt. Ltd shared: As the demand for platinum jewellery expands beyond metros into Tier 2 and Tier 3 cities, it’s exciting to see a new wave of consumers gravitate towards the metal’s minimal, modern aesthetic. At this year’s Platinum Buyer-Seller Meet, we’re focusing on showcasing a wider set of customisation capabilities, especially in love bands and daily wear pieces, to meet the evolving preferences of this wider audience.”

Colin Shah, Founder & Managing Director, Kama Jewellery said: “The men’s platinum jewellery segment continues to show strong momentum, especially among younger consumers looking for differentiated, meaningful pieces. At this year’s Buyer-Seller Meet, we’re excited to showcase new innovations in this space, aligned with the bold, modern codes that define the Men of Platinum narrative.”

The previous edition of the Platinum Buyer-Seller Meet saw a remarkable response from the industry, with extensive participation across PGI’s network of retailers and manufacturers. It also marked the announcement of Inoveo Platinum, a new alloy with transformative potential for platinum jewellery manufacturing, and featured an exclusive preview of the highly anticipated MS Dhoni Signature Edition Collection by Men of Platinum launched in October 2024 across leading retail stores.

As the platinum jewellery market in India continues to evolve and expand, the Platinum Buyer-Seller Meet plays a pivotal role in shaping its trajectory by fostering strong partnerships, unlocking new revenue avenues, and driving a platinum-forward approach to establish the metal as a clear choice for the modern Indian consumer.

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GJEPC Jaipur Seminar highlights benefits of ODOP & Rajasthan Export Policy

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GJEPC’s Jaipur Regional Office organised a special seminar on 17 June to raise awareness among its members about the Government of Rajasthan’s One District One Product (ODOP) initiative and the Rajasthan Export Promotion Policy.

Smt. Shilpi Raj Purohit, General Manager, District Industries Centre (GMDIC), was the key speaker at the session. She offered in-depth insights into the features of both policies and the various incentives available for exporters. Highlighting the schemes’ impact, she explained how ODOP and the state’s export policy are helping entrepreneurs expand their footprint in international markets.

Addressing the members, GJEPC Regional Chairman Mr. Yogendra Garg encouraged exporters to take full advantage of these government initiatives. He noted that such policies are aimed at promoting local products on a global scale and giving a much-needed boost to Rajasthan’s gems and jewellery industry.

The seminar witnessed active participation from members, who engaged in discussions and gained clarity on how to leverage these schemes for their business growth.

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Divine Solitaires Celebrated Father’s Day in Pune with a Heartfelt Tribute

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This Father’s Day, Divine Solitaires brought families together in a touching celebration of love, gratitude, and unbreakable ties. Held from June 7th to 15th across Ranka Jewelers stores in Pune, the special initiative invited customers to pause and honor the often-unspoken strength and presence of their fathers.

Visitors to the stores were encouraged to write heartfelt messages for their dads and capture the emotion at a specially curated selfie booth. These beautiful memories were then shared on Instagram, where the digital campaign sparked a wave of love and nostalgia — reminding everyone of the quiet, steady role fathers play in our lives.

The response from customers was truly heartwarming, with families taking the time to express affection in meaningful, memorable ways — from handwritten notes to cheerful photos filled with laughter and warmth.

Jignesh Metha

Reflecting on the initiative, Jignesh Mehta, Founder & Managing Director, Divine Solitaires, shared, “Fatherhood often reveals itself in the background — in actions rather than words. With this campaign, we wanted to create a space where those emotions could be voiced and cherished. Diamonds catch the light—but it’s love that holds it. Hearing our customers’ stories reminded us of that.”

To make the celebration even more special, a few lucky winners were surprised with thoughtful gifts from Divine Solitaires, adding a moment of joy to their already memorable day.

With heartfelt participation and genuine expressions of love, Divine Solitaires’ Father’s Day initiative turned everyday store visits into powerful moments of connection — celebrating the love that doesn’t need words—the kind only a father knows.

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