Summary of this article
The overall demand for gold was at a record high at 1,313 tonnes
In value terms the overall demand stood at $146 billion
The overall demand for gold in India for Q3 2025 stood at 209.4 tonnes
Gold Demand Trends Q3 2025: The year 2025 has been a great year for gold globally with the demand for the yellow metal seeing a sharp rise in the September quarter. According to the World Gold Council’s (WGC’s) Q3 2025 Gold Demand Trends report, the overall demand for gold was at a record high at 1,313 tonnes or $146 billion in value terms.
Closer home in India, the overall demand for gold in India for Q3 2025 stood at 209.4 tonnes, down by 16 per cent compared to overall Q3 demand for 2024 of 248.3 tonnes.
Despite the decline in tonnage, the demand for gold in value terms grew by 23 per cent to Rs 2,03,240 crore in July-September 2025 compared to Rs 1,65,380 in the corresponding quarter in the previous year. Notably, the rise in value terms followed a strong rally in gold prices.
During the July-September period of 2025, the quarterly average price of gold remained around $3,456.5 per troy ounce compared to $2,474.3 in the corresponding quarter of 2024. In India, the quarterly average price of gold in the September quarter remained around Rs 97,074.9 per 10 grams compared to Rs 66,614.1 per 10 grams in the corresponding quarter of 2024.
Investment Demand For Gold Outpaces Demand For Jewellery
Despite the decline in the overall demand for gold, the demand for the yellow metal specifically for the purpose of investment witnessed a strong surge. On the other hand, the demand for gold jewellery saw moderation, indicating a shift in tastes and preferences amid rising gold prices.
The demand for gold for investment purpose in the September quarter of 2025 grew by 20 per cent to 91.6 tonnes compared to 76.7 tonnes in the same period of the previous year. In value terms, the investment demand for gold stood at Rs 88,970 crore, up by 74 per cent from Rs 51,080 crore in the corresponding quarter of the previous year.
The purchase of bars and coins for the purpose of investment also rose 17 per cent year-on-year (y-o-y) globally, totalling 316 tonnes with a significant contribution from India of 92 tonnes. The desire to invest in the yellow metal was spurred by a combination of uncertain and volatile geopolitical conditions, dollar weakness, and a widespread feeling of fear of missing out (FOMO) as the price of the yellow metal increased.
The demand for gold jewellery moderated in India by 31 per cent y-o-y to 117.70 tonnes as compared to Q3 2024 wherein it stood at 171.60 tonnes. India also experienced its weakest third quarter for jewellery consumption since 2020. The festive demand provided a short-term boost, as jewellery demand witnessed an uptick on a quarter on quarter (q-o-q) basis, despite an overall slump in demand, as the accelerating price rally triggered consumers to purchase before further increase in gold prices. The price rise has made buyers conscious and led to a rise in lighter weight and lower-karat pieces. The report also said that consumers are increasingly willing to exchange old gold jewellery, rather than buy new gold items outright.
Outlook For Gold Ahead
WGC projected in its report that the investment-friendly environment for the yellow metal is expected to persist amid heightened geopolitical uncertainty and ongoing dollar weakness. On the other hand, gold has remained a hedge against potential equity market corrections. As such, strength in investment flows is expected to continue.
Sachin Jain, regional CEO, India, WGC said in the report that the festive and wedding season are expected to boost demand for the yellow metal despite prevailing high prices. He added that robust demand across both jewellery and investment categories is anticipated, taking the full year demand for gold to as much as 700 tonnes.
“Looking ahead, the current festive and wedding seasons are pivotal for the yellow metal. Gold's unique cultural significance means festivals traditionally drive strong buying interest. Despite prevailing high prices, consumer sentiment remains positive, and retailers are well-prepared. We anticipate robust demand across all categories, from traditional jewellery to investment products, as the market gears up for a vibrant festive and wedding season. With total gold demand from January to September at approximately 462.40 tonnes, we anticipate full-year demand between 600 and 700 tonnes, more towards the higher end of range,” Jain said.
