Editor’s Note
This article highlights a key trend in India’s gold market: while demand by volume fell 16% year-on-year in Q3 2025, its total value surged 23% to over ₹2 lakh crore, driven by high prices. This divergence underscores gold’s enduring value proposition even amid shifting consumption patterns.
According to the World Gold Council’s “Gold Demand Trends Report Q3 2025,” the total value of gold demand in India during the July to September 2025 period stood at ₹2,03,240 crore, marking a 23 percent increase compared to the same quarter last year. However, a decline was recorded in total volume.
Total demand for the quarter was recorded at 209.4 tonnes, which is 16 percent lower than Q3 2024, indicating that high prices are boosting value. This includes jewellery demand of 117.7 tonnes, down 31 percent year-on-year, but its value remained stable at ₹1,14,270 crore.
Demand for gold as an investment grew by 20 percent to reach 91.6 tonnes, while its value surged by 74 percent to ₹88,970 crore. According to the report, this growth was driven by an increase in average prices during the quarter.
He further stated that investment demand has shown “exceptional strength,” reflecting the strategic commitment of Indian consumers to adopt gold as a long-term store of value.
On the supply side, imports were 194.6 tonnes, down 37 percent from the year-ago quarter, and recycling was 21.8 tonnes, a 7 percent decline. The report states that these changes indicate that households are holding onto their gold rather than selling it in the market. Prices remained elevated during the quarter, averaging $3,456.5 per ounce and ₹97,074.9 per 10 grams (excluding import duty and GST), which has shifted trends from jewellery-based to investment-based purchases.
Total annual demand is approximately 462.4 tonnes. The Council expects full-year demand to be between 600 and 700 tonnes, with results leaning towards the higher end of this range based on seasonal buying and price volatility towards the end of the year.