India's Gold Demand Drops 16% in Q3 Despite Higher Value
India's gold demand fell 16% year-on-year to 209.4 tonnes in the July-September quarter, with jewelry demand declining by 31% to 117.7 tonnes. However, the value of gold demand increased by 23% due to higher prices. Investment demand reversed the trend, rising 20% to 91.6 tonnes as consumers favored bars and coins as long-term assets.
During the July to September quarter of 2025, India's gold demand decreased by 16% year-on-year, reaching 209.4 tonnes. This decline was primarily driven by a 31% drop in jewelry demand, which fell to 117.7 tonnes. Despite the lower volume, the overall value of gold demand rose by 23% owing to increased gold prices, indicating a higher cost per unit of gold. In contrast to the falling jewelry consumption, investment demand in gold witnessed a significant increase of 20%, amounting to 91.6 tonnes. This indicates that Indian consumers shifted their preference towards gold bars and coins, treating them as long-term investment assets amid market conditions. This data reflects changing consumer behavior in the Indian gold market, balancing between traditional jewelry purchases and investment-driven acquisitions, as documented by the World Gold Council.
