Gold demand in India drops 16 pc in Q3 2025 due to price rally

New Delhi, Oct 30 Gold demand in India fell 16 per cent year-on-year to 209.4 tonnes in the July-September quarter due to a sharp rise in prices that pushed up value by 23 per cent, World Gold Council data showed on Thursday.

Jewellery demand fell 31 per cent by volume during the quarter, while investment demand for coins and bars increased by 20 per cent, the data said.

The price of 24-carat gold (1 gram) was at Rs 11,962 on Thursday, up from 11,935 the previous day, according to data published by the India Bullion and Jewellers Association (IBJA).

In value terms, jewellery spending remained nearly flat at Rs 1.14 lakh crore, while demand for gold investments surged 74 per cent to Rs 88,970 crore.

Gold prices, excluding import duty and GST, increased sharply by 46 per cent to Rs 97,075 per 10 grams in the September quarter, against Rs 66,614 recorded in Q3 2024. This surge impacted consumer sentiment and reduced imports by 34 per cent, down to 195 tonnes from 308 tonnes.

"Gold prices traded volatile with mild gains as the US Fed’s rate cut failed to bring major cheer, being largely on expected lines. However, sentiment in bullion remained supportive after US President Donald Trump hinted at allowing nuclear weapons testing amid other nations pushing nuclear tests," said Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities.

Gold is expected to remain volatile within a range of Rs 1,18,000 to Rs 1,24,500 in the near term, he added.

Analysts forecast that jewellery demand is projected to recover in the December quarter following a strong Dhanteras and Diwali period, as footfall went up around 15 per cent.

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