India’s gold consumption in 2025 is set to moderate from last year’s nine-year peak, as a rally in prices to a record high is seen dampening jewellery demand, even as investment demand rises, the World Gold Council (WGC) said on Wednesday.
Demand for gold could stand between 700 metric tons and 800 metric tons, compared to last year’s 802.8 tons, which was the highest since 2015, Sachin Jain, CEO of WGC’s Indian operations, told Reuters.
Historically, rising gold prices first affect jewellery customers, and if prices keep rising and remain volatile this year, jewellery demand will be impacted, Jain said.
Domestic gold prices hit a record high of 84,399 rupees ($968.62) per 10 grams on Wednesday. They have risen 10 per cent so far in 2025 after rising more than 21 per cent in 2024.
“Households that buy jewellery have a set budget, and when they purchase jewellery, their budget does not increase at the same rate as the rise in gold prices,” Jain said.
However, the soaring gold prices, leading to effectively higher returns, are boosting investment demand, which will rise further in 2025 after surging 29 per cent in 2024 to an 11-year high of 239.4 tons, he said.
Jewellery accounts for nearly 70 per cent of India’s total gold demand, while investment demand makes up the rest.
“It is anticipated that the trend of robust gold investment demand will continue, with retail investors showing growing interest in gold ETFs, digital gold, and coins and bars,” Jain said.
