India’s Gold Demand Set to Cool in 2025 as Prices Soar to Record Highs: WGC

India’s gold consumption is projected to moderate to 700–800 metric tons in 2025, down from 2024’s nine-year peak of 802.8 tons, as record prices dampen jewelry demand, according to the World Gold Council (WGC). Domestic gold prices surged to an all-time high of ₹84,399 per 10 grams in early 2025, rising 10% this year after a 21% jump in 2024. While jewelry demand (70% of total consumption) faces headwinds due to price sensitivity, investment demand surged 29% in 2024 to an 11-year high of 239.4 tons, driven by retail interest in ETFs, coins, and digital gold. The Reserve Bank of India also quadrupled gold purchases to 73 tons in 2024, signaling confidence in the metal’s long-term value.

Source: Bloomberg News