India’s gold demand fell 16 per cent by volume in the July-September quarter of 2025 as record-high prices dampened consumer appetite, though investment buying surged on safe-haven appeal, the World Gold Council said on Thursday.Total gold demand declined to 209.4 tonnes in the third quarter from 248.3 tonnes a year earlier, according to the industry body.
However, the value of demand jumped 23 per cent to Rs 2,03,240 crore from Rs 1,65,380 crore, reflecting sharply higher gold prices.
Gold jewellery demand, which accounts for the bulk of consumption in the world’s second-largest bullion market, dropped 31 per cent to 117.7 tonnes from 171.6 tonnes. But the value of jewellery purchases remained flat at around Rs 1,14,270 crore as buyers adjusted to elevated price levels.
Investment demand showed “remarkable strength”, rising 20 per cent by volume to 91.6 tonnes and surging 74 per cent in value terms to Rs 88,970 crore from Rs 51,080 crore, the WGC said.
“This highlights a deepening strategic commitment among Indian consumers to gold as a long-term store of value,” Sachin Jain, World Gold Council Regional CEO for India, said.
The average gold price in India rose to Rs 97,074.9 per 10 grams during the quarter, up 46 per cent from Rs 66,614.1 a year earlier, excluding import duty and GST. International prices averaged USD 3,456.5 per ounce, compared with USD 2,474.3 in the year-ago period.
Despite the volume decline, Jain remained optimistic about demand during the crucial festive and wedding season, citing early signs from retailers and strong sales in October during Diwali.
There is a 16 per cent drop in volume but there is a 23 per cent historic rise in value. We cannot ignore that,” Jain told PTI. “Indian consumers are catching up with the rise in per capita income and disposable income.”
He noted that many consumers preponed their wedding purchases as prices climbed in recent months, providing confidence for a strong fourth quarter.
Gold imports tumbled 37 per cent to 194.6 tonnes from 308.2 tonnes, while recycling fell 7 per cent to 21.8 tonnes.
Jain said the import figures reflected last year’s surge following a historic duty reduction announced in the July 2024 budget, which made the year-ago quarter an exceptionally strong base for comparison.
The council expects full-year demand of 600-700 tonnes, toward the higher end of that range, after demand of 462.4 tonnes in the first nine months.
India’s decline contrasted with global trends, where gold demand rose to 1,313 tonnes in the third quarter, the highest on record. The global surge was driven primarily by central bank purchases and investment demand, with the National Bank of Poland remaining the largest buyer among central banks.