The World Gold Council projects a cooling in India’s gold consumption for 2025, marking a decline from last year’s nine-year peak of 802.8 metric tons.
This shift is primarily driven by gold prices hitting record high levels, reaching 84,399 rupees ($968.62) per 10 grams, following a substantial 21% increase in 2024 and an additional 10% rise already in 2025.
While jewelry demand, which traditionally accounts for 70% of India’s total gold consumption, is expected to decrease due to fixed household budgets failing to keep pace with rising prices, investment demand is rising.
Investment interest in gold surged 29% to an 11-year high of 239.4 tons in 2024 and is expected to continue growing through various channels including ETFs, digital gold, and physical bars and coins.