Mumbai: The World Gold Council’s (WGC) Q1 2025 Gold Demand Trends report reveals total quarterly gold demand (including OTC ) was 1,206t, a 1% increase year-on-year, in a record high price environment, in which gold surpassed US$3,000/oz.

The gold ETF revival fuelled a more-than doubling of total investment demand to 552t, a 170% year-on-year increase and the highest since Q1 2022. ETF inflows accelerated around the world, totalling 226t in the first quarter as price momentum and tariff policy uncertainty drove investors to gold as a safe haven.

Total bar and coin demand increased 3% y/y, remaining elevated at 325t during Q1, spurred by a surge of retail investment in China, which posted its second-highest quarter on record. Eastern investors drove much of the global demand for bar and coin, offsetting Western weakness as appetite in the US dropped 22% year-on-year, alongside a modest 12t recovery in Europe, but from a very low base in the same quarter last year.

Central Banks are now entering their 16th consecutive year of net-buying, adding 244t to global reserves in Q1 amidst ongoing global uncertainty. While this level of demand was 21% lower year-on-year, it remains robust and in line with the quarterly average for the last three years of sustained, strong buying.

Unsurprisingly, jewellery demand was negatively impacted as gold hit 20 all-time price highs in Q1. Volumes reached their lowest point since demand was stifled by the COVID pandemic in 2020. However, the jewellery market remained relatively resilient, especially in value terms, given extreme price pressures. The first quarter saw a 9% year-on-year increase in consumer spending to US$35bn with every market except China seeing an increase in the value of gold jewellery demand.

Total gold supply was relatively flat year-on-year, at 1,206t in the first quarter as record Q1 mine production was offset by slightly lower recycling. Technology demand was also stable at 80t, compared to Q1 2024.

Louise Street, Senior Markets Analyst at the WGC, commented, “It’s been a bumpy start to the year for global markets as trade turmoil, unpredictable US policy announcements, sustained geopolitical tensions and a return of recessionary fears have created a highly uncertain environment for investors. In this context, investment demand for gold has paved the way for the highest level of first quarter demand since 2019. 

“Over the past 10 months investors have returned to gold ETFs, ramping up their allocations since Q3 last year, and already in April, Asian inflows have stormed past their Q1 total. However, there is still room for growth, with global gold ETF holdings sitting 10% below their 2020 high.

“Looking ahead, the broader economic landscape remains difficult to predict, and that uncertainty could provide upside potential for gold. As turbulent times persist, safe haven demand for gold from institutions, individuals and the official sector could climb higher in the months to come.”

GDT India Fact Sheet:

India Gold Demand Statistics for Q1 2025 (January – March)

India Gold Demand Statistics for Q1 2025 (January – March)

• Demand for gold in India for Q1 2025 was at 118.1 tonnes, down by 15% as compared to overall Q1 demand for 2024 (139.0 tonnes)
• India’s Q1 2025 gold demand value was Rs. 94,030 crores, up by 22% as compared to Q1 2024 (Rs. 76,820 crores)

• Total Jewellery demand in India for Q1 2025 decreased by 25% to 71.4 tonnes as compared to Q1 2024 (95.5 tonnes)
• The value of jewellery demand was Rs. 56,880 crores, up by 8% from Rs. 52,750 crores recorded in Q1 2024

• Total Investment demand for Q1 2025 was at 46.7 tonnes, increased by 7% in comparison to Q1 2024 (43.6 tonnes)
• In value terms, gold Investment demand in Q1 2025 was Rs. 37,150 crores, up by 54% from Q1 2024 (Rs. 24,070 crores)

• Total gold recycled in India in Q1 2025 was 26 tonnes, down by 32% compared to 38.3 tonnes in Q1 2024

• Total gold imports in India in Q1 2025 was 167.4 tonnes, up by 8% compared to 155.4 tonnes in Q1 2024

• Total Gold ETFs AUM till March 2025 was 64.5 tonnes.

• Total Gold Reserves of Reserve Bank of India till March 2025 was 879.6 tonnes.

• US$/oz average quarterly price in Q1 2025 was US$ 2,859.6 in comparison to US$ 2,069.8 in Q1 2024

• INR/10g average quarterly price in Q1 2025 was INR 79,633.4 in comparison to INR 55,247.2 in Q1 2024 (without import duty and GST)

India gold demand figures for the period January – March vs. the corresponding period in 2024:

Gold Demand	Q1’2024Jan – Mar 2024			Q1’2025Jan – Mar 2025			% Growth
	Tonnes	INR (crore)	USD (bn)	Tonnes	INR (crore)	USD (bn)	Volume Tonnes	Value (INR)	Value (USD)
Jewellery	95.5	52,750	6.4	71.4	56,880	6.6	-25%	8%	3%
Investment	43.6	24,070	2.9	46.7	37,150	4.3	7%	54%	48%
Total	139.0	76,820	9.3	118.1	94,030	10.9	-15%	22%	17%

Mr. Sachin Jain, Regional CEO, India, World Gold Council said, “India’s gold demand in Q1 2025 stood at 118.1 tonnes, total 15% drop from 139 tonnes in the same period last year. However, this decline in volume was offset by a 22% surge in the overall value of demand, propelled by soaring global gold prices which have risen 25% since January 2025. This historic rally of gold prices reaching a record high of Rs 1 lakh per 10 grams in India, has further reinforced the metal’s appeal as a safe-haven asset among Indian consumers.

Investment demand remained resilient, rising 7% year-on-year to 46.7 tonnes, driven by growing interest in gold ETFs, digital gold, coins, and bars. Conversely, gold jewellery demand declined by 25% to 71.4 tonnes from 95.5 tonnes in Q1 2024, with elevated prices impacting affordability. Yet, the enduring cultural and seasonal significance of gold, especially ahead of key occasions like Akshaya Tritiya and the upcoming wedding season continues to support consumer buying sentiment.

Gold retailers too, are optimistic about favourable buying behaviour through the rest of the festive season, despite ongoing tariff-related uncertainties. The 8% rise in gold imports to 167.4 tonnes in Q1 2025 further reinforces this supply-side preparedness by Indian jewellery retailers. In contrast, gold recycling fell by 32% to 26 tonnes, as consumers retained their holdings amid record-high prices.

With cultural affinity, festive momentum, and resilient investment interest, India’s gold story is poised to shine even brighter in the months ahead. Our overall forecast for Indian gold demand for 2025 is between 700-800 tonnes.