Despite record-high prices of gold in 2024-25, Indian households’ purchase of the yellow metal hasn’t been seriously depressed. While gold prices went up 33.78% during 2024-25, import demand in volume terms contracted just 4.79%, according to department of commerce data.
Gold imports in 2024-25 in value terms increased 27.38% on year to $ 58.01 billion. That was an increase of $ 12.47 billion over the previous year.
In volume terms the imports dropped to 757.15 tonnes from 795.32 billion. Some of the gold demand compression is due to the fall seen in exports of gold jewellery during the financial year.
Between 2023-24 and 2024-25 – international gold prices went up 33.78% to average around $ 76611.73 per kg.
According to the World Gold Council in 2024 the gold demand for jewellery contracted 11% on year because the unrelenting gold price strength impacted the ability of consumers worldwide to buy. The weakness was global, although India’s 2% year-on-year decline showed resilience, particularly compared with China’s 24% year-on-year drop.
For India the biggest bumps in gold demand were seen in the months of August and November in 2024. The August spike came after the first full budget of Prime Minister Narendra Modi government’s third term in July cut import duties on the yellow metal to 6% from 15%. The other spike was in November in the midst of the festive season.
The gold price has been on a gradual upward swing since October 2022 and after November 2024, the month of elections in the US that brought back Donald Trump back as president the rise has been very steep.As tariff threats by Trump sparks sell-off in global financial markets, the investors are rushing to gold.