Safe-haven gold’s demand, in volume terms, has dropped in Indian markets in the January-March quarter of 2025, due to an unprecedented rise in its prices. According to the World Gold Council, India’s gold demand in the first quarter of 2025 stood at 118.1 tonnes, a total 15% drop from 139 tonnes in the same period of last calendar year.
But notably, this decline in sales volume was offset by a 22% surge (in rupee terms) in the overall value of demand, propelled by soaring global gold prices, which have risen 25% since January 2025.
“This historic rally of gold prices reaching a record high of Rs 1 lakh per 10 grams in India has further reinforced the metal’s appeal as a safe-haven asset among Indian consumers,” Sachin Jain, Regional CEO, India, World Gold Council, said.
The uncertainties surrounding Trump’s reciprocal tariffs plan and counter-tariffs have come as a shot in the arm to international gold prices, which have been moving northward for a considerable period. Analysts believe that safe-haven gold will remain elevated in the event of a possible escalation in the trade war. Publicly available data showed that international gold prices rose at an unprecedented pace in 2025, soaring over 20%. Over the past year, they have risen about 40%.
What Else?
Coming back to WGC data, it noted that the investment demand in the quarter remained resilient, rising 7% year-on-year to 46.7 tonnes, driven by growing interest in gold ETFs (exchange traded funds), digital gold, coins, and bars.
Conversely, gold jewellery demand declined by 25% to 71.4 tonnes from 95.5 tonnes in Q1 2024, with elevated prices impacting affordability.
“Yet, 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,” Jain asserted.
“Gold retailers, too, are optimistic about favourable buying behaviour through the rest of the festive season, despite ongoing tariff-related uncertainties.”
The 8% rise in gold imports to 167.4 tonnes in the January-March quarter of 2025 further reinforces this supply-side preparedness by Indian jewellery retailers, WGC said. In contrast, gold recycling fell by 32% to 26 tonnes, as consumers retained their holdings amid record-high prices.
“With cultural affinity, festive momentum, and resilient investment interest, India’s gold story is poised to shine even brighter in the months ahead,” Jain further said. WGC has pegged India’s gold demand for 2025 between 700-800 tonnes.
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