Demand for gold increased
The World Gold Council (WGC) said on Thursday that rising gold prices are motivating Indian investors to buy gold bars and coins. With record purchases of $10 billion in the September quarter, gold’s share in total consumption has reached an all-time high. Sachin Jain, CEO of WGC’s India operations, said gold has become a mainstream asset as investors diversify their portfolios and increase investments, even among those who previously had less exposure.
He said that we believe that investors’ interest in gold will remain and there will be growth in the coming quarters. The World Gold Council (WGC) said that investment demand in the world’s second largest gold consumer country increased by 20% on an annual basis in the September quarter to 91.6 metric tons, i.e. by 67% in terms of value to $ 10.2 billion. However, total gold consumption declined by 16% to 209.4 tonnes, while jewelery demand declined by 31% to 117.7 tonnes due to record high prices.
growth in gold
Local gold prices had reached a record Rs 132,294 per 10 grams in the beginning of June, after a growth of 21% last year, they have increased by 56% so far in 2025. WGC said that investment demand accounted for 40% of total gold consumption in the first nine months of 2025, which is the highest on record. Jain said that amid the rally, physical backed gold exchange-traded funds are also gaining momentum.
Data compiled by the Association of Mutual Funds in India (AMFI) showed that gold ETFs saw record monthly inflows of Rs 83.63 billion in September. Jain said that the demand in the December quarter is expected to be higher than the September quarter, which will be supported by festivals and wedding season. However, despite this seasonal recovery, total gold demand in 2025 could be between 600 to 700 metric tons.