Tag: gold

Business

India’s Gold Demand Drops 16% in Q3 2025 Amid Record Prices, Investment Buys Surge

Tanisha Cardozo

India’s gold demand declined by 16% year-on-year in the July-September quarter of 2025, as record-high prices curtailed jewellery purchases even as investment buying showed remarkable growth, according to the World Gold Council (WGC). Total gold demand dropped to 209.4 tonnes in Q3 2025, compared with 248.3 tonnes during the same period last year. Despite the lower volume, the value of gold demand rose sharply by 23% to Rs 2,03,240 crore from Rs 1,65,380 crore, reflecting a surge in gold prices.

Gold jewellery, which forms the bulk of India’s consumption, fell 31% to 117.7 tonnes from 171.6 tonnes a year ago. However, consumers continued to adjust to high prices, keeping the total value of jewellery purchases steady at around Rs 1,14,270 crore. In contrast, investment demand grew 20% by volume to 91.6 tonnes and surged 74% in value to Rs 88,970 crore, highlighting Indian consumers’ growing commitment to gold as a long-term store of wealth.

The average gold price in India during the quarter climbed to Rs 97,074.9 per 10 grams, up 46% from Rs 66,614.1 a year earlier, excluding import duty and GST. Internationally, gold prices averaged $3,456.5 per ounce, compared with $2,474.3 in the same period last year.

Sachin Jain, Regional CEO (India) of the WGC, noted that despite the drop in overall demand, early signs of recovery were visible in October, driven by the festive and wedding seasons. Many consumers advanced wedding-related purchases in anticipation of further price increases, which could support strong fourth-quarter demand.

Gold imports fell 37% to 194.6 tonnes from 308.2 tonnes a year earlier, while recycling declined 7% to 21.8 tonnes. The WGC noted that the lower import volume reflected the exceptionally high base in the previous year, following a duty cut announced in the July 2024 budget that triggered a surge in purchases.

For the full year 2025, the WGC expects India’s gold demand to total between 600 and 700 tonnes, likely near the higher end of that range, after cumulative demand of 462.4 tonnes in the first nine months. Globally, gold demand hit a record 1,313 tonnes in Q3, driven mainly by central bank buying and investment inflows, with Poland’s National Bank as the largest central bank buyer.

Jain emphasized that India’s demand profile differs from global trends, where central bank purchases and investment flows dominate, as jewellery demand remains predominantly an Indian phenomenon. Geopolitical uncertainties, trade tensions, and diversification of dollar reserves into gold are expected to keep prices and demand momentum firm in the months ahead.

Human Interest

Dhanteras 2025 Sees ₹1 Lakh Crore Sales as Gold & Silver Demand Surges Despite Record Prices

Tanisha Cardozo

Indian consumers went on a festive shopping spree this Dhanteras, with total spending crossing ₹1 lakh crore, led by an overwhelming demand for gold and silver despite all-time high prices. According to data released by the Confederation of All India Traders (CAIT), ₹60,000 crore worth of gold and silver was sold — a 25% rise from last year’s Dhanteras.

Gold prices peaked at ₹1,32,000 per 10 grams, a record-high that slightly corrected in major markets like Delhi and Mumbai ahead of the big day. Despite the surge, the gold buying frenzy continued, although volumes dipped 10–15% compared to last year. However, the overall transaction value rose sharply, driven by strategic buyers focused on investment over weight.

Silver proved to be the star of Dhanteras 2025. With prices skyrocketing by nearly 55% year-on-year to ₹1,80,000 per kilogram, demand didn’t wane — in fact, it shifted. Industry data shows a 35–40% increase in silver coin sales, particularly from Tier 2 and Tier 3 cities, as buyers chose budget-conscious and ceremonial purchases over heavy gold investments. The All India Gem and Jewellery Domestic Council (GJC) described silver’s rise as a “smart, value-focused investment,” especially for gifting and puja purposes.

Pankaj Arora, National President of the All India Jewellers and Goldsmith Federation, noted an “unprecedented rush” across jewellery markets, particularly in Delhi, where gold and silver sales alone crossed ₹10,000 crore.

Beyond bullion, festive shopping remained upbeat across other segments. Utensils accounted for ₹15,000 crore in sales, while electronics and electrical items saw ₹10,000 crore in purchases. Decorative items and religious materials also contributed an additional ₹3,000 crore.

According to GJC Vice Chairman Avinash Gupta, “Average transaction value rose 20–25% despite volume dips. Most encouraging is the surge in silver coin sales in smaller towns — a reflection of value-seeking, resilient consumers.”

Dhanteras 2025 confirmed that Indian consumers remain deeply committed to tradition, and willing to adapt their buying strategy in response to market trends. Even with volatility in bullion prices, sentiment stayed strong — reaffirming gold and silver’s timeless status as both cultural and economic assets.

Business

Silver Surges Past ₹1.09 Lakh per Kg on MCX – A Historic High

allycaralgoa

Mumbai, June 19, 2025 – In a historic development for the precious metals market, silver prices on the Multi Commodity Exchange (MCX) crossed the ₹1.09 lakh per kilogram mark for the first time ever, driven by strong global cues, safe-haven demand, and investor optimism in commodities.

The benchmark July futures contract of silver surged to ₹1,09,250/kg during early trade on Wednesday, setting a new all-time high on MCX. This unprecedented rally reflects a confluence of international market momentum, a weakening dollar, and persistent inflation concerns globally.

Why Is Silver Rallying?

Analysts attribute the sharp rise in silver prices to several key factors:

  • Global Market Tailwinds: International silver prices have been steadily rising amid geopolitical tensions, higher industrial demand, and expectations of interest rate cuts by central banks, particularly the U.S. Federal Reserve.
  • Safe-Haven Demand: With global economic uncertainty and volatile equity markets, investors are increasingly turning to silver and gold as hedges, contributing to upward pressure on prices.
  • Industrial Demand: Silver is a critical component in electronics, solar panels, and EV batteries. The clean energy transition continues to boost demand for the metal across manufacturing hubs.
  • Speculative Buying: In recent sessions, silver has witnessed renewed interest from retail and institutional investors alike, fueling speculative buying on MCX.

Gold Also on the Rise

The surge in silver comes alongside gains in gold, which is trading near record highs as well. MCX gold futures hovered above ₹72,000 per 10 grams, mirroring the broader bullish sentiment in the bullion market.

What It Means for Investors and Consumers

For investors, this rally reaffirms the long-standing position of silver as a valuable portfolio diversifier and inflation hedge. However, for industries reliant on silver, such as electronics and jewelry, rising input costs could lead to downstream price hikes.

Market experts advise caution, noting that while the trend is bullish, volatility could rise in the short term. Profit-booking and macroeconomic shifts could still affect prices in the coming weeks.

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“The ₹1.09 lakh mark is a psychological and technical milestone. Silver’s fundamentals remain strong, but short-term corrections can’t be ruled out,” said Anuj Mehta, a commodities strategist.

Outlook: Will the Rally Sustain?

As the global economy navigates a mix of inflationary pressures, rate decisions, and geopolitical dynamics, precious metals are likely to remain in focus. If current trends continue, silver may test higher levels in the coming months, with resistance seen around ₹1.12–1.15 lakh/kg, according to market analysts.

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