The Reserve Bank of India made a fresh purchase of 300 kg of gold during the January-March quarter. Image for representation only
| Photo Credit: Reuters

Gold demand in India witnessed a 5% on-year rise at 802.8 tonnes in 2024 supported by reduction in import duty, and purchases related to weddings and festivals, and going ahead consumption of the yellow metal in 2025 is likely to be between 700-800 tonnes, according to the World Gold Council.

The World Gold Council (WGC) in a report on Wednesday (Feb. 5, 2025) said gold demand in the country in 2024 stood at 802.8 tonnes, as against 761 tonnes in 2023.

The total gold demand value went up by 31% at ₹5,15,390 crore in 2024, compared to ₹3,92,000 crores in 2023.

“Our outlook for 2025, gold demand is between 700-800 tonnes. It is expected that gold jewellery demand will recover due to wedding-related purchases, provided there is some level of price stability,” WGC Regional CEO, India, Sachin Jain told PTI.

It is pertinent to mention here that the gold price touched multiple record highs over the past year.

According to the All India Sarafa Association, gold prices extended the rally for the fifth straight session and rose ₹500 to hit a fresh peak of ₹85,800 per 10 grams in the national capital on Tuesday (Feb. 4, 2025) amid robust demand from jewellers and retailers.

In this year, gold has surged ₹6,410 or 8.07% to ₹85,800 per 10 grams from ₹79,390 per 10 grams on January 1.

The WGC’s 2024 Gold Demand Trends report stated that during the fourth quarter (October-December) demand was flat at 265.8 tonnes, which is similar to 266.2 tonnes in the same period of 2023.

Meanwhile, in 2024, the jewellery demand declined by 2% to 563.4 tonnes in 2024, compared to 575.8 tonnes in 2023, said.

“The total jewellery demand, in terms of volume, decreased by 2% to 563.4 tonnes in 2024, despite the gold price reaching multiple record highs.

“This indicates the resilience of gold jewellery demand in India and highlights the effect of the duty cut in July as well as India’s stronger economic growth compared to many other markets,” Mr. Jain said.

He said that many consumers purchased gold jewellery in the late third quarter when the duty cut mitigated much of the recent price increase.

Gold prices resumed their upward trend after the July duty cut, and a subsequent correction in November attracted investors seeking lower-priced purchases, he added.

Nonetheless, Jain said, the value of gold demand during 2024 increased by 22%, illustrating the ongoing demand for gold and supported by the rise in gold prices throughout the year.

“Total gold investment went up by 29% in 2024, at 239.4 tonnes — the highest since 2013, compared to 185.2 tonnes in 2023, reinforcing gold’s status as a safe-haven asset,” Mr. Jain stated.

Gold recycling last year saw a decline of 2% at 114.3 tonnes from 117.1 tonnes in 2023.

Further, gold imports in India in 2024, decreased by 4% to 712.1 tonnes as compared to 744 tonnes in 2023.

“There was consistent ETF demand throughout the year, and the festival period of Dhanteras and Diwali in October/November stimulated buying in the final quarter. This was further enhanced in major metropolitan cities by e-commerce platforms offering rapid delivery of small gold investment bars and coins,” he noted.

Further, he said, the Reserve Bank of India was a significant purchaser in 2024, acquiring 73 tonnes, more than four times its gold purchases of 16 tonnes in 2023.

Additionally, it is anticipated that the trend of robust gold investment demand will continue, with retail investors showing growing interest in gold ETFs, digital gold, and coins and bars, he added.

Representational image of gold bars and gold pellets
| Photo Credit: Getty Images

India’s gold demand declined 5% to 149.7 tonnes during the June quarter, due to record high prices, the World Gold Council (WGC) said in a report on Tuesday.

The gold demand stood at 158.1 tonnes during the corresponding quarter of the previous calendar year, WGC’s ‘Q2 2024 Gold Demand Trends’ report said.

However, in value terms, gold demand increased 17% during the second quarter at ₹93,850 crore, compared to ₹82,530 crore in the same period of the previous year.

Prices during the April-June quarter soared, with the cost of 24-carat gold crossing ₹74,000 per 10 grams.

The average price of gold during the April-June period in U.S. dollar terms was $2,338.2, compared to $1,975.9 in the same period of 2023. The average quarterly price in rupee terms was ₹62,700.5, compared to ₹52,191.6 in the same period last year (excluding import duty and GST), WGC said.

“India’s gold demand softened slightly in the second quarter of 2024, reaching 149.7 tonnes, down 5% year-on-year. This can be attributed to record-high gold prices impacting affordability and causing a slowdown in consumer purchases. However, the overall value of demand remained strong, increasing by 14%, highlighting gold’s enduring value for Indian consumers,” said Sachin Jain, WGC Regional CEO, India.

Further, the report said the total jewellery demand in India declined 17% to 106.5 tonnes during the quarter compared to 128.6 tonnes in the corresponding period of the last year.

Total investment demand increased 46% in the second quarter at 43.1 tonnes in comparison to 29.5 tonnes in the same period of last year, said the report.

The WGC report further stated that recycled gold in India during the quarter under review dipped 39% to 23 tonnes, compared to 37.6 tonnes in Q2 2023.

Total gold imports in India during the April-June quarter were 196.9 tonnes, which is 8% more compared to 182.3 tonnes in the same period of last year.

Mr. Jain said jewellery demand felt the pressure of high prices, declining 17% to 107 tonnes due to high local prices, the general election and a severe heatwave.

“While festivals like Akshaya Tritiya and Gudi Padwa provided a temporary boost, record high prices continued to dampen consumer sentiment,” he added.

However, he said, investment demand surged 46% to 43.1 tonnes, its highest second-quarter level since 2014 driven by expectations of further price appreciation and safe-haven buying.

Bucking global trends, India’s gold recycling fell 39% to 23 tonnes, as consumers opted to exchange old jewellery for new rather than cashing in. This indicates limited distress selling and highlights gold’s enduring role as a store of value in India, he noted.

“Looking ahead, the recent 9% reduction in import duty on gold is expected to revive the gold demand in the July quarter ahead of the main festive season that begins from September, which could be further boosted by a healthy monsoon. India’s economic outlook too remains positive, with strong GDP forecasts and rural sector recovery are all likely to support demand in the second half of the year. Our forecast for full-year demand is between 700 to 750 tonnes,” Mr. Jain added.