Rising purchases of bars, coins and exchange-traded funds helped offset a slowdown in jewellery demand, which declined as higher prices weighed on consumer buying. This shift kept overall gold demand broadly supported during the quarter.
According to the report, investment demand rose 52% year-on-year to 82 tonnes, while jewellery consumption fell 19.5% to 66 tonnes. Total gold demand in the country increased 10.2% to 151 tonnes during the period.
Investment demand accounted for 54.3% of total consumption in the quarter, exceeding jewellery’s share for the first time.
Traditionally, investment demand contributes roughly a quarter of India’s overall gold consumption.
Sachin Jain, chief executive of the WGC’s Indian operations, said investment interest is expected to remain strong, driven by participation from both financial and retail investors. He added that this segment is likely to play a more prominent role in the coming quarters.
Gold exchange-traded funds saw a sharp increase in inflows, rising 186% year-on-year to a record 20 tonnes.
The trend has been supported by relatively subdued performance in equities, with the Nifty 50 gaining only about 2.4% since early 2025, even as domestic gold prices have nearly doubled over the same period.
The divergence in returns has encouraged investors to increase allocations to gold, reinforcing the metal’s appeal as a store of value in uncertain market conditions.
–With Reuters inputs
First Published: Apr 29, 2026 11:50 AM IST
