The report stated that prices have shown 10 per cent rise so far in 2025 after rising over 21 per cent in 2024
India’s gold consumption is expected to moderate in 2025 from a nine-year peak observed last year, driven by a dampening jewellery demand due to a rally in prices to a record high, as per the reports by Reuters which cited World Gold Council (WGC).
The report added that the gold demand could dip to 700 to 800 metric tonne in the current year, as against 802.8 tonne during the last year. The demand for gold last year was the highest since 2015. The report stated that a surge in the prices of gold first shows its impact on jewellery customers and if the prices keep recording an uptick and remain volatile this year, this could well mean that the jewellery demand would be impacted.
On Wednesday, the domestic gold prices hit a record high of Rs 84,399 per 10 grams, as per the report which also stated that the prices have shown 10 per cent rise so far in 2025 after registering a rise of around 21 per cent in the last year.
On the other hand, the surge in gold prices are proving to be good on the investment front. Leading to effective higher returns, the rising prices are providing a boost to investment demand which will rise further in 2025 after 29 per cent in 2024 to an 11-year high of 239.4 tonne, as per the Reuters report.
As far as the segments are concerned, jewellery accounts for around 70 per cent of the country’s overall gold demand, while investment demand enjoys the rest. The report added that there is an anticipation that the trend of gold investment demand will be continuing, with retail investors displaying growing preference for gold ETFs, digital gold and coins and bars.
