However, when compared to June quarter of last year, the domestic demand for gold jewellery has plunged 16 per cent to a five-year low of 89 tonnes (against 106 tonnes)
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India’s gold jewellery demand has overtaken that of China in the first half of this year largely due to the sharp rise in yellow metal prices.
The jewellery demand in India was up six per cent at 563 tonnes in the six months ended June against 511 tonnes logged in China (including Hong Kong and Taiwan), according to the World Gold Council report on Thursday.
In the June quarter also, India’s jewellery gold demand was higher at 89 tonnes against 74 tonnes recorded by China.
However, when compared to June quarter of last year, the domestic demand for gold jewellery has plunged 16 per cent to a five-year low of 89 tonnes (106 tonnes), on the back of sharp rally in gold prices amid global economic uncertainty and raging war between Russia-Ukraine.
Similarly, in China, jewellery demand was down 20 per cent to 74 tonnes (92 tonnes).
However, in terms of value, it was up 20 per cent at ₹80,150 crore against ₹66,810 crore, logged in the same period last year.
Overall, domestic gold demand, including that of investments, was down 10 per cent to 135 tonnes (150 tonnes). In terms of value, it increased 30 per cent to ₹1.21 lakh crore (₹93,850 crore) as gold prices firmed up.
Investments in gold was up 7 per cent to 46 tonnes (43 tonnes) as investors hedged their risk in the safe haven. Gold investments in terms of value jumped 54 per cent to ₹41,650 crore (₹27,050 crore).
Prices zoom
The landed cost of gold excluding import duty and GST were up 44 per cent in June quarter at ₹90,307 per 10 grams against ₹62,700 logged in the same period last year.
Globally, the average price increased 40 per cent to $3,280 an ounce against $2,338 an ounce last year.
Despite high prices, gold recycling was flat at 23.1 tonnes (23 tonnes) reflecting the bullish undertone of the yellow metal among consumers. Imports were down 34 per cent at 102 tonnes (155 tonnes).
Sachin Jain, Regional CEO, India, World Gold Council, said the fall in physical demand was largely due to rising gold prices but consumers confidence in the yellow metal is reflected in the sharp rise in gold investment which confirms its appeal as a safe-haven asset.
With the gold prices falling in the last few months, consumers sitting on the fence should take the plunge closer to the festival season and boost demand in the second half, he added.
Even if all the global uncertainty including the war between different countries and trade tariff uncertainty are settled gold should rally upto 5 per cent and if the current crisis persists it should be up 10-15 per cent, he noted.
As the total gold demand from January to June stood at 253 tonnes, WGC retained its full-year demand target between 600 and 700 tonnes.
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Published on July 31, 2025
