Gold prices in India have been making history, reaching new all-time highs. On Wednesday, gold touched a record ₹84,657 per 10 grams, with some cities witnessing prices exceeding ₹86,000. Given this trend, it is possible that in the coming years, gold may even touch ₹1,00,000 per 10 grams, yet its demand in India is unlikely to wane.
Indian Gold Demand Sees Five Percent Growth in 2024
Despite soaring prices, gold demand in India surged by 5% in 2024, reaching 802.8 tons, driven by lower import duties, wedding season purchases, and festival-related buying. According to the World Gold Council (WGC), this is a significant increase from 761 tons in 2023. The total value of gold demand in India jumped by 31% to ₹5,15,390 crore in 2024, compared to ₹3,92,000 crore in 2023.
Gold Demand in 2025: Stability Expected
Sachin Jain, Regional CEO (India) of WGC, predicts that India’s gold demand in 2025 will range between 700-800 tons. If gold prices remain somewhat stable, demand for gold jewelry is expected to improve, particularly for wedding and festive purchases.
Gold Prices at Unprecedented Highs
According to the All India Sarafa Association, gold prices surged for the fifth consecutive trading session on Tuesday, reaching ₹85,800 per 10 grams in Delhi. This year alone, gold has gained ₹6,410 or 8.07%, climbing from ₹79,390 per 10 grams on January 1 to ₹85,800 now.
RBI Quadruples Gold Reserves in 2024
The Reserve Bank of India (RBI) significantly increased its gold reserves in 2024, purchasing 73 tons of gold, compared to just 16 tons in 2023—a fourfold rise.
Gold Imports and Jewelry Demand See Decline
- Gold jewelry demand fell by 2% in 2024, dropping to 563.4 tons from 575.8 tons in 2023.
- Gold imports declined by 4% to 712.1 tons, down from 744 tons in 2023.
Strong Investor Interest in Gold
Investment in gold ETFs, digital gold, coins, and bars continues to increase, indicating strong demand among retail investors.
Global Gold Demand Remains Steady
While India witnessed a rise in gold consumption, global gold demand remained largely stable, with a marginal 1% increase to 4,974 tons in 2024, up from 4,945.9 tons in 2023. Factors such as higher gold prices, slow economic growth, and rising global uncertainties led to a decline in jewelry demand worldwide.
Key Gold Market Insights in India
- Annual Gold Consumption: Approximately 800 tons
- Annual Expenditure on Gold: ₹3.6-4.0 lakh crore
- Gold Consumption in 2020: 445 tons (post-pandemic recovery)
- Indians hold 80% of gold in jewelry form
Factors Driving Gold’s Growing Popularity
Geopolitical tensions on the rise
Rate cuts by major central banks
Federal Reserve’s decision to cut interest rates
Strengthening of the US Dollar Index
Surging gold prices at both domestic and global levels
India and other major economies increasing gold reserves
Stock market volatility fueling gold investments
Gold’s Everlasting Demand in India
Despite record-breaking prices, gold remains a cultural and financial cornerstone for Indians. Whether for festivals, weddings, or investment, Indians continue to trust gold as a safe haven asset, ensuring strong and consistent demand, even at ₹1,00,000 per 10 grams. 
Gold Price Surge: Despite ₹1 Lakh per 10g Projection, India’s Demand Remains Unshaken
