MUMBAI: Gold demand fell 15% year-on-year to 118.1 tonnes in the March quarter in India, even as its value rose 22% to ₹94,030 per 10 grams due to surging prices, according to the World Gold Council (WGC). In April, prices climbed further, crossing the ₹1 lakh mark in retail markets as international gold rates hit a record $3,500 per ounce (28.35 grams).
Given the price rally, the WGC forecasts that the country’s gold demand in 2025 is expected to be 700-800 tonnes.
Investment demand, however, remained resilient with a 7% rise to 46.7 tonne, up from 43.6 tonne in the corresponding period, the WGC said, adding however, jewellery demand declined by 25% to 71.4 tonne during the reporting quarter from 95.5 tonne in the year-ago period. This is the lowest volume since 2020, though value rose 3% on-year.
Gold imports rose 8% to 167.4 tonne in the March quarter, while recycling fell 32% to 26 tonne, as consumers held onto their gold amid record prices.
The average quarterly gold price in the first quarter was Rs 79,633.4/10 grams, compared to Rs 55,247.2 in Q1 of 2024.
Meanwhile, global demand increased 1% to 1,206 tonne in the reporting period-- the highest first-quarter level since 2019.
Gold prices have risen more than 25% since the beginning of 2025, after rallying more around 32% in by April as the US tariff tantrums along with central banks’ demand kept the save haven asset highly wanted. In 2024 the metal had rallied 24%.
"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 chief executive Sachin Jain said Wednesday.
According to experts, gold is humming with excitement on the auspicious occasion of Akshaya Tritiya, which holds immense cultural significance in the country, traditionally marking a surge in gold purchases. But record prices have pushed consumers towards smaller, lightweight pieces, with some postponing purchases hoping for price dips.
While current prices may prompt some to exercise caution, the inherent cultural significance of gold during Akshaya Tritiya, coupled with its enduring status as a reliable asset, suggests continued positive momentum in buying.