India The demand for gold declined by 15 percent to 118.1 tonnes in the January-March quarter this year, while its value increased by 22 percent to Rs 94,030 crore due to rising prices. According to the World Gold Council (WGC) forecast on Wednesday, India’s demand for gold may remain between 700-800 tonnes by 2025. From the beginning of 2025, gold prices have increased by 25 percent, which crossed the limit of Rs 1,00,000 per 10 grams. “High prices have affected the power to buy gold,” WGC India CEO Sachin Jain said in his quarterly report. Despite this, permanent cultural significance of gold is especially supporting the spirit of shopping in the Akshaya Tritiya and the wedding season. ‘
Buyers can make distance due to high prices on Akshaya Tritiya
According to experts, the golden market is full of enthusiasm on the auspicious occasion of Akshaya Tritiya. This day has immense cultural significance in India and traditionally there is a huge increase in gold purchases on this occasion. However, experts believe that some people may distance from shopping due to the current high prices, but during the Akshaya Tritiya, the inherent cultural importance of gold and its permanent status as a reliable asset indicate continuous positive speed in shopping. Nevertheless, investment demands remained strong and it increased by 7 percent to 46.7 tonnes in January-March from 43.6 tonnes.
25 percent declines in demand for gold jewelery in January-March quarter
The demand for jewelery declined by 25 percent to 71.4 tonnes during the first (January-March) quarter of the calendar year 2025, which was 95.5 tonnes in the same period a year ago. According to WGC, it was the lowest volume since 2020. Gold imports increased by 8 percent to 167.4 tonnes in the January-March quarter, while the recycling fell by 32 percent to 26 tonnes due to consumers preserving their gold despite the record prices. The average quarterly price of gold in the first (January-March) quarter of this year was Rs 79,633.4 per 10 grams as compared to Rs 55,247.2 in the first quarter of 2024. Meanwhile, global gold demands have increased by 1 percent to 1206 tonnes in the January-March quarter of 2025, which is the highest demand recorded in the first quarter after 2019.
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