Gold demand in the March quarter was down 15 per cent at 118 tonnes against 139 tonnes logged in the same period a year ago, largely due to high prices suppressing jewellery sales.
However, in value terms the demand was up 22 per cent at ₹94,030 crore against ₹76,820 crore registered last year, according to the World Gold Council data released on Wednesday.
Jewellery demand dipped 25 per cent to 71 tonnes (95 tonnes), while in value terms it was up 8 per cent to ₹56,880 crore (₹52,750 crore) in line with the rally in gold prices.
Recycling, too, down
The average gold prices have increased 44 per cent to ₹79,633 (₹55,247) per 10 gm chasing the global prices which rallied on the back of turbulence in the US and global economy. In dollar terms, the yellow metal was up 38 per cent to $2,860 ($2,070) an ounce in the March quarter.
Despite high gold prices, old gold jewellery recycling dipped 32 per cent to 26 tonnes (38 tonnes) as consumers expect prices to move up further given the global unrest.
Gold imports were up 8 per cent to 167 tonnes (155 tonnes) with jewellers expecting the demand to remain strong despite high prices.
Interestingly, investments in gold increased 7 per cent to 47 tonnes as investors preferred to hedge their volatile equity market risk in safe-haven gold. The investment demand was boosted by various avenues such as ETFs, digital gold, coins and bars. The demand from exchange-traded gold funds was 64 tonnes.
Retailers optimistic
Sachin Jain, Regional CEO, India, World Gold Council, said the recent historic rally in gold prices to a record high of ₹1 lakh per 10 gm has further reinforced the metal’s appeal as a safe-haven asset among Indian consumers.
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, he added.
Gold retailers are optimistic about favourable buying behaviour through the rest of the festive season, despite ongoing tariff-related uncertainties, he said. WGC expects overall domestic gold demand in this year to range between 700-800 tonnes.
Globally, gold demand in March quarter was up one per cent to 1,206 tonnes driven by fresh investments, which more than doubled to 552 tonnes. ETF inflows accounted for 226 tonnes in the first quarter as price momentum and tariff policy uncertainty drove investors to safe-haven gold.
Central banks were net buyers for the 16th consecutive year adding 244 tonnes to global reserves in the quarter under review amidst ongoing global uncertainty. However, the demand was lower by 21 per cent year-on-year.
Published on April 30, 2025
