Gold Demand Falls Sharply in 2025 as Soaring Prices Keep Buyers Away

New Delhi (The Uttam Hindu): Gold prices have surged sharply in 2025, leading to a significant decline in consumer demand across India. According to industry experts, the average gold rate has increased by nearly 15–20% this year, touching record highs during the festive season. As a result, many buyers have postponed or reduced their gold purchases, impacting both jewelry and investment demand.

The World Gold Council (WGC) has reported that India's gold demand in the first three quarters of 2025 dropped by almost 10% compared to last year. Experts attribute this to high inflation, rising global prices, and a strong US dollar, which pushed domestic gold prices beyond ₹70,000 per 10 grams in several cities.

Jewelers say that even though weddings and festivals usually drive strong demand, this year’s high price volatility has made customers cautious. Many people are now opting for lightweight jewelry or gold-plated ornaments instead of heavy gold pieces.

Market analysts predict that demand could recover slightly in early 2026 if prices stabilize or decline. However, they note that gold will continue to remain a preferred long-term investment option due to global economic uncertainty and inflationary trends.