Golden Trends: Navigating Rising Prices and Cultural Significance in 2025

India’s gold demand saw a 15% decline despite a value increase due to rising prices, with cultural factors like Akshaya Tritiya sustaining consumer interest. WGC forecasts 2025 demand at 700-800 tonnes, highlighting gold’s role as a safe asset amid financial uncertainty, impacting buying patterns.

India witnessed a 15% decline in gold demand in the first quarter of 2025, according to the World Gold Council (WGC), even as the value climbed by 22% to Rs 94,030 crore due to soaring prices. The WGC predicts that India's gold demand for 2025 will be between 700-800 tonnes.

Gold prices have surged by 25% since the start of 2025, nearing the significant Rs 1,00,000 per 10 grams mark, altering consumer purchasing habits. 'The high prices affect affordability, yet gold's cultural importance, especially before Akshaya Tritiya and wedding season, supports buying sentiment,' said Sachin Jain, WGC India CEO.

Despite elevated prices, the gold market remains vibrant around Akshaya Tritiya, a culturally significant occasion in India traditionally seeing a spike in gold purchases. Consumers are opting for smaller, lightweight pieces, but wedding-related demand remains stable. While jewellery demand declined, investment demand rose 7%, reflecting gold's appeal as a safe asset amidst market uncertainties.

(With inputs from agencies.)