According to the World Gold Council’s Q2 2025 Gold Demand Trends report, jewellery demand continued to decline globally, with the volume of consumption down 14%.In China, it declined 20% and Indian demand fell 17% year-on-year. In value terms, however, the global gold jewellery market increased to a total of $36 billion
Mumbai: Despite a decline in physical gold demand by volume, India’s gold market posted a significant surge in value during the second quarter of 2025, according to the World Gold Council’s Q2 2025 Gold Demand Trends report.
Gold demand in India for Q2 2025 stood at 134.9 tonnes, marking a 10% year-on-year decline from 149.7 tonnes in the same quarter last year. However, in value terms, demand soared 30% to Rs 1,21,800 crore, reflecting the sharp rise in gold prices globally and domestically.
Calling it a“pivotal moment in consumer behaviour”, Sachin Jain, Regional CEO, India, World Gold Councilsaid while volumes dipped, the value surge—driven by record prices—demonstrates gold’s continued strength as a safe-haven asset. “Overall, Q2 2025 reinforces gold’s fundamental role in India, shaped by our rich cultural heritage and driven byboth investment acumen and the significance of upcoming festive seasons. With total gold demand from Januaryto June at approximately 253 tonnes, we anticipate full-year demand to range between 600 and 700 tonnes,” he stated.
The average domestic gold price reached Rs 90,306.8 per 10 grams, while the average global price rose to $3,280.4 per ounce, up from $2,338.2 in Q2 2024.
Key India highlights from the report (Q2 2025):
- Jewellery demand fell 17% to 88.8 tonnes, down from 106.5 tonnes in Q2 2024.However, its value rose 20% to Rs 80,150 crore from Rs 66,810 crore
- Investment demand rose 7% to 46.1 tonnes, with the value increasing a remarkable 54% to Rs 41,650 crore from Rs 27,050 crore
- Gold imports declined 34% to 102.5 tonnes, indicating cautious stocking by the trade amid high prices
- Recycled gold supply saw a slight 1% uptick to 23.1 tonnes, reflecting opportunistic selling by consumers
The overall rise in value, despite volume softness, points to Indian consumers’ evolving approach—prioritizing gold as a strategic financial asset over purely ornamental use, especially during periods of global economic uncertainty and price volatility.
India’s performance also echoes global trends, with total global gold demand (including OTC) reaching 1,249 tonnes, a 3% year-on-year increase, largely fuelled by investment flows amid geopolitical unpredictability.
In Q2, jewellery demand continued to decline with the volume of consumption down 14% and nearing low levels last seen in 2020 during the COVID pandemic. Jewellery demand in China was down 20% and Indian demand fell 17% year-on-year. However, in value terms the global jewellery market increased to a total of $36billion.
Louise Street, Senior Markets Analyst at the World Gold Council, commented:“Global markets have navigated a volatile start to the year marked by trade tensions, unpredictable US policy shifts and frequent geopolitical flashpoints. The robust investment activity we have seen in the first half of 2025 underscores gold’s role as a hedge against economic and geopolitical risks. Ongoing market volatility, coupled with gold’s impressive price performance in recent months, has also generated significant momentum, drawing capital from investors around the globe.
“Gold recorded a remarkable 26% appreciation in the first half of the year in dollar terms, outperforming many major asset classes. With such an impressive start to the year, it is possible that gold could trade within a relatively narrow range in the latter half of 2025.
On the other hand, the macro-economic environment remains highly unpredictable, which may underpin further gains for gold. Any material deterioration in global economic or geopolitical conditions could further amplify gold’s safe-haven appeal, potentially pushing prices higher still.”
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