April 30, 2026
NEW DELHI – India’s gold market witnessed a structural shift in the March quarter, with investment demand overtaking jewellery consumption for the first time on record, according to the World Gold Council (WGC).
The surge in investment buying, driven by strong interest in coins, bars, and exchange-traded funds (ETFs), helped offset a sharp decline in jewellery demand, which was weighed down by elevated gold prices.
Investment demand rose 52% year-on-year to 82 metric tonnes during the quarter, while jewellery consumption dropped 19.5% to 66 tonnes, the WGC said in its latest report. Overall gold demand in India increased 10.2% to 151 tonnes.
The trend is likely to gain further momentum in the coming quarters as both retail and financial investors increase their exposure to the precious metal.
Investment demand accounted for 54.3% of total gold consumption in the March quarter—a significant shift from the historical trend, where it typically contributes about a quarter of overall demand.
The rise in investment appetite has been supported by a sharp rally in domestic gold prices, which have nearly doubled since the start of 2025. In contrast, India’s benchmark Nifty 50 has delivered relatively modest returns of around 2.4% over the same period.
Gold ETFs emerged as a key driver of this shift, with inflows surging 186% year-on-year to a record 20 tonnes in the March quarter. Analysts attribute the spike to a growing investor preference for safe-haven assets amid volatile equity markets and global uncertainties.
The WGC noted that while higher prices have dampened jewellery purchases, they have simultaneously boosted investment demand, signalling a changing pattern in India’s gold consumption dynamics.