Source: India.com
WGC Reports
Along with decrease in volume, consumption value increased by 22 percent, having been spiked by price rises in the first quarter of 2025. India’s gold consumption fell by 15 percent of that year’s last year’s 118.1 tonnes, during the period of January-March 2025, WGC, the World Gold Council, said on Wednesday. However, the value of gold consumed rose quite considerably at an increase of 22 percent at ₹94,030 crore including a record-high prices.
Impact of Rising Gold Prices
Gold prices have increased 25 per cent from January 2025, creeping towards ₹ 1,00,000 per 10 grams: This change, very evident at this time, has changed the decision-making pattern of the consumers themselves.”The elevated prices have impacted affordability. Yet, the enduring cultural significance of gold, especially ahead of Akshaya Tritiya and the upcoming wedding season, continues to support buying sentiment,” WGC India CEO Sachin Jain said in its quarterly report
Stable Regarding Wedded Necessities
Overall, the general consumption of jewelry reached a decline in recent times. However, the purchase of jewelry related to marriage remains more stagnant, considering the strong social ties it has with gold, particularly during ceremonies and events such as Akshaya Tritiya.
Hard-hitting Resilience in Investment Demand
Investment demand in gold increased 7% to 46.7 tonnes, compared to 43.6 tonnes in Q1 2024. Experts opine that the growth in demand has much to do with gold’s reputation as a safe haven asset that has been flying under the radar in the midst of noise made in balking financial markets, particularly as applicable to bars and coins.
Fall in Jewelry Demand
Jewelry consumption reduced by 25% to 71.4 tonnes during the first quarter of 2025 compared to last year’s volume of 95.5 tonnes. This reduction reflects the lowest level of jewellery consumption since 2020. Nevertheless, the value of jewelry purchases, has gone up by 3 percent year-on-year as consumers opted for smaller, inexpensive pieces or postponed purchases since they hoped to find cheaper prices according to WGC.
Gold Imports and Recycling Trends
At 167.4 tonnes, imports of gold were up by 8% in Q1 2025, while 26 tonnes of gold, or a decrease of 32%, was recycled. Consumers are retaining their gold due to higher prices, resulting in a slowdown of recycled gold.
Market Trends
The average price of gold in Q1 2025 rose to ₹79,633.4 per 10 grams compared to ₹55,247.2 in Q1 2024.
Global Gold Demand
In Q1 2025, global gold demand increased by 1% to 1,206 tonnes, the highest first-quarter demand in four years since 2019.
2025 Outlook
The WGC places India’s total demand for gold in 2025 between 700 and 800 tonnes, which would translate as the low demand in four years. Demand is expected to be propped up somewhat by cultural factors of gold-gifting occasions such as Akshaya Tritiya and the wedding season, but unless gold prices come down, demand will most likely remain subdued.
