India’s gold demand declined by 11% in 2025 and is expected to be around 700 tonnes this year, weighed down by record-high prices and changing consumer buying patterns, the World Gold Council (WGC) said in a report on Thursday.

Overall gold demand in India fell 11 per cent to 710.9 tonne in 2025 and is expected to be between 600 and 700 tonne in 2026, according to the WGC’s Full-Year 2025 Gold Demand Trends report.

In 2024, the overall gold demand stood at 802.8 tonnes.

However, in value terms, skyrocketing prices boosted demand by 30 per cent to ₹7,51,490 crore, compared to ₹5,75,930 crore in the previous year.

“India’s gold market in Q4 2025 clearly reflected the dual impact of record-high prices and shifting consumer behaviour. Total gold demand for the quarter stood at 241.3 tonne, marking a 9 per cent decline compared to Q4 2024.

“However, this moderation in volume was more than offset by a sharp rise in value, with overall gold demand increasing 49 per cent year-on-year to approx. ₹303,470 crore,” WGC Regional CEO, India, Sachin Jain told PTI.

The average gold price on January 1, 2025, rose by 67 per cent to ₹1,01,572 per 10 grams in 2025, compared to ₹70,754 in January 2024.

Demand for gold in India for the October-December quarter declined by 9 per cent at 241.3 tonne as compared to 265.8 tonne in the corresponding period of the previous year.

However, demand value surged by 49 per cent to ₹3,03,470 crore from ₹2,03,070 crore in the same period of 2024.

Total Jewelery demand in India for the whole of 2025 decreased by 24 per cent to 430.5 tonnes compared to 563.4 tonnes in 2024.

The value of jewelery demand increased by 12 per cent at ₹4,54,390 crore, compared to ₹4,04,510 crore recorded in 2024.

“Despite the wedding season, jewelery volumes dropped by 23 per cent to 145.3 tonne as record-high prices and affordability pressures weighed on consumption. This volume-value divergence mirrors 2025’s exceptional price rally, with gold delivering over 60 per cent returns and 53 all-time highs,” Jain said.

In contrast, investment demand emerged as a clear bright spot during the quarter. Total investment demand rose 26 per cent year-on-year to 96 tonne, while its value more than doubled to ₹120,700 crore, up 108 per cent compared to the fourth quarter (Q4) 2024, he said.

“This strong performance highlights a growing strategic commitment among Indian investors to gold as a long-term portfolio hedge,” added Jain.

On the supply side, gold imports during Q4 2025 stood at 215.1 tonne, marginally lower by 5 per cent compared to the same period last year.

Gold imports, which are usually in line with demand, dipped 17 per cent to 663.7 tonnes in 2025, as compared to 801 tonnes in the previous year, he said.

Recycling activity declined more sharply, down 27 per cent to 21.7 tonne, suggesting that consumers are choosing to retain their gold holdings despite record prices, Jain said, adding that this behavior further reinforces gold’s role as a trusted store of wealth, especially during periods of economic and market uncertainty.

“Overall, 2025 demand in volume terms was just lower by 11 per cent to 710.9 tonne, but in contrast, value-wise the demand was up by a massive 30 per cent to ₹7,51,490 crore in comparison to 2024,” he stated.

Meanwhile, according to WGC data, the Reserve Bank of India (RBI) added 4 tonne of gold to its reserves compared to 73 tonne in 2024.

Looking ahead to 2026, he said WGC expects Indian gold demand to be around 600-700 tonne as gold is well positioned to continue benefiting from persistent global uncertainties, a potentially softer interest rate environment, and sustained diversification efforts by global central banks.

“At the same time, we expect investment demand to remain robust, driven by increasing awareness of gold’s portfolio benefits and a growing appetite for ETFs and digital gold as reliable hedges against volatility,” he added.

Published on January 29, 2026

Global demand for gold has crossed 5,000 tonnes to reach a new all-time high in 2025, mainly driven by investments, the World Gold Council (WGC) said in a report on Thursday.

Total gold demand hit a new all-time high of 5,002 tonne in 2025, up from 4,961.9 tonne in the previous year, as the investment demand surged to 2,175.3 tonne compared to 1,185.4 tonne in 2024, driven by safe-haven and diversification factors, according to the WGC’s Full-Year 2025 Gold Demand Trends report.

In the October-December quarter, the consumer demand went up by 2 per cent to 1,345.3 tonnes compared with 1,318.5 tonnes in the corresponding period of the previous year.

The average gold price globally stood at $2,709.7 per ounce in January 2025 on the LMBA (London Bullion Market Association) as compared to $2,034 per ounce in January 2024.

Investment demand, both ETFs and bars and coins, went up by 84 per cent in 2025 to 2,175.3 tonnes from 1,185.4 tonnes in the previous year.

This surge in investment demand was due to safe-haven and diversification factors following elevated geopolitical and geoeconomic risk, US dollar weakness, extended stock valuations and expectations of lower interest rates, especially in the October-December quarter.

Meanwhile, Central bank demand remained elevated in 2025, with the official sector adding 863 tonne of gold, as the buying gained momentum in the fourth quarter (October-December) at 230 tonne.

The National Bank of Poland was the largest buyer for the second consecutive year, adding 102 tonne in 2025, followed by the National Bank of Kazakhstan with 57 tonne, the Central Bank of Brazil with 43 tonne, the State Oil Fund of Azerbaijan with 38 tonne, the Central Bank of Turkey with 27 tonne, the People’s Bank of China with 27 tonne and the Czech National Bank bought 20 tonne in 2025.

While annual demand was below the 1,000 tonne mark surpassed in the previous three years, central bank buying remained a prominent and additive factor in the global gold demand picture, said the WG report.

Amidst a spate of price highs, global jewelery demand softened across the globe as expected throughout the year, declining 18 per cent compared to 2024.

However, the total value of gold jewelery demand increased 18 per cent year-on-year to $172 billion, highlighting the relevance of gold for consumers in the long term.

Total supply also reached a new record, as mine production rose to 3,672 tonnes and recycling increased by a modest 3 per cent, remaining subdued despite high prices.

“The year 2025 saw surging demand for gold and rocketing prices. Consumers and investors alike bought and held gold in an environment where economic and geopolitical risks have become the new normal. Investment demand stole the show as investors raced to access gold through all available routes, but other segments played a supporting role,” WGC Senior Markets Analyst Louise Street said.

Jewelery demand dipped by only 18 per cent year-on-year against a 67 per cent price increase, highlighting continued consumer willingness to buy at elevated prices, while central banks remained firmly committed to bolstering reserves, she said.

“With economic and geopolitical instability showing little sign of retreat in 2026, momentum from last year’s strong gold demand is likely to persist. In the first month of this year, gold has already pushed past $5,000 an ounce for the first time, underscoring gold’s role as a safe haven in uncertain times,” she added.

Published on January 29, 2026