India’s gold demand falls 15% in January-March to 118.1 tonnes on excessive costs: World Gold Council

At a jewelry store in Basavangudi, in Bengaluru, on Akshaya Tritiya day, on April 30, 2025. File
| Photograph Credit score: The Hindu

“India’s gold demand witnessed a 15% on-year decline to 118.1 tonnes within the January-March quarter of this 12 months, whilst worth grew by 22% to ₹94,030 crore owing to surging costs,” the World Gold Council (WGC) stated on Wednesday (April 29, 2025.)

In accordance with the WGC forecast, India’s gold demand for 2025 is anticipated to be between 700-800 tonnes. Gold costs have risen 25% for the reason that starting of 2025, approaching the important thing psychological threshold of ₹1,00,000 per 10 gm, affecting shopper shopping for patterns.

“The elevated costs have impacted affordability. But, the enduring cultural significance of gold, particularly forward of Akshaya Tritiya and the upcoming marriage ceremony season, continues to assist shopping for sentiment,” WGC India CEO Sachin Jain stated in its quarterly report.

In accordance with consultants, the gold market is buzzing with pleasure on the auspicious event of Akshaya Tritiya, which holds immense cultural significance in India, historically marking a surge in gold purchases.

Report costs have pushed shoppers in the direction of smaller, light-weight items, with some suspending purchases hoping for value dips. Regardless of this, wedding-related demand remained comparatively steady given its important nature.

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“Consultants imagine, whereas the present value ranges would possibly immediate some to train warning, the inherent cultural significance of gold throughout Akshaya Tritiya, coupled with its enduring standing as a dependable asset, suggests continued constructive momentum in shopping for,” they added.

Funding demand, nevertheless, remained resilient with a 7% rise to 46.7 tonnes, from 43.6 tonnes within the corresponding interval. Furthermore, amid monetary market uncertainty, gold’s function as a secure asset has change into extra pronounced, and acquired mirrored in a pointy uptick in demand for gold bars and cash.

Nonetheless, jewelry demand declined by 25% to 71.4 tonnes throughout the first quarter of 2025 calendar 12 months, from 95.5 tonnes within the year-ago interval. This was the bottom quantity since 2020, although worth was 3% larger year-on-year, based on WGC.

Gold imports rose 8% to 167.4 tonnes within the January-March quarter, whereas recycling fell 32% to 26 tonnes, as shoppers held onto their gold amid file costs. The typical quarterly gold value within the first quarter of this 12 months was ₹79,633.4 per ten gram, in comparison with ₹55,247.2 in Q1 2024.

In the meantime, world gold demand has elevated 1% to 1,206 tonnes within the January-March quarter of 2025 — the best first-quarter stage since 2019.