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