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  • Gold Imports Rise 8% Ahead Of Festive Season, But Demand Dips As Prices Hit ₹1 Lakh

Gold Imports Rise 8% Ahead Of Festive Season, But Demand Dips As Prices Hit ₹1 Lakh

The council expects for gold demand to remain resilient amid global uncertainties, driven by festivals and the wedding season. Despite rising prices, India’s deep-rooted cultural and financial relationship with gold continues to support its long-term demand outlook.

Gold Imports Rise 8% Ahead Of Festive Season, But Demand Dips As Prices Hit ₹1 Lakh


India’s gold demand fell sharply in volume terms in the January–March quarter of 2025, according to the World Gold Council (WGC). The council reported a 15 per cent decline in demand, which stood at 118.1 tonnes, compared to 139 tonnes during the same period last year. This drop came as gold prices soared to unprecedented levels. Despite the fall in volume, the overall value of gold demand surged 22 per cent in rupee terms. The sharp rise followed a 25 per cent increase in global gold prices since January. Retail prices in India touched Rs 1 lakh per 10 grams.

High Gold Prices Support Value Despite Falling Volume

Sachin Jain, Regional CEO, India, World Gold Council, said, “This historic rally of gold prices reaching a record high of Rs 1 lakh per 10 grams in India has further reinforced the metal’s appeal as a safe-haven asset among Indian consumers.” Analysts linked this rally to global economic uncertainties, particularly the impact of Donald Trump’s reciprocal tariff plans and retaliatory measures by other countries. Publicly available data showed global gold prices rising more than 20 per cent in 2025 alone. Over the past year, international gold prices have increased by around 40 per cent, reinforcing gold’s traditional safe-haven appeal.

Investment Demand Rises, Jewellery Demand Drops

WGC data showed that gold investment demand remained strong despite high prices. Investment rose 7 per cent year-on-year to 46.7 tonnes. Consumers continued to show interest in gold ETFs, digital gold, coins, and bars. However, jewellery demand declined significantly. “Gold jewellery demand declined by 25 per cent to 71.4 tonnes from 95.5 tonnes in Q1 2024,” the WGC reported. High prices affected affordability for retail buyers. Still, Jain added, “Yet, the enduring cultural and seasonal significance of gold, especially ahead of key occasions like Akshaya Tritiya and the upcoming wedding season, continues to support consumer buying sentiment.”

Retailers and Imports Reflect Strong Sentiment

Indian gold retailers responded to the market with increased imports, which rose 8 per cent to 167.4 tonnes during the first quarter of 2025. The WGC stated that the rise in imports reflects supply-side preparedness by Indian jewellery retailers. Jain said, “Gold retailers, too, are optimistic about favourable buying behaviour through the rest of the festive season, despite ongoing tariff-related uncertainties.” At the same time, gold recycling saw a sharp decline. Consumers held on to their gold as prices peaked. WGC data reported a 32 per cent fall in recycling volumes, which dropped to just 26 tonnes this quarter.

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India’s 2025 Gold Demand Pegged at 700–800 Tonnes

The World Gold Council projected India’s full-year gold demand for 2025 at between 700 and 800 tonnes. Jain stated, “With cultural affinity, festive momentum, and resilient investment interest, India’s gold story is poised to shine even brighter in the months ahead.” The council expects demand to remain resilient amid global uncertainties, driven by festivals and the wedding season. Despite rising prices, India’s deep-rooted cultural and financial relationship with gold continues to support its long-term demand outlook.

(With Inouts From ANI)

Also Read: History Today: The Forgotten Horror of Bijon Setu When 16 Monks Lynched And Burnt in Broad Daylight

 

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gold demand gold prices

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