Gold hits 48 all-time highs in 2025 as prices soar and demand stays strong

Record highs fuel investor appetite; ETFs see unprecedented inflows, jewellery sales hold up despite affordability pressure.

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Gold prices have been on an extraordinary run, hitting 48 all-time highs this year and crossing the $4,000 per ounce mark globally — the steepest increase in 45 years, as per the World Gold Council’s India Gold Market Update.

 

Domestic prices have surged 66% year-to-date, mirroring international gains of 58%, driven by global uncertainties and a weak rupee.

 

The rally has been fuelled by geopolitical tensions, expectations of U.S. Fed rate cuts, and safe-haven buying amid volatile financial markets.

 

Domestically, the gains were even sharper due to the rupee’s depreciation, with gold now trading above ₹1,20,000 per 10 grams in spot markets.

 

Despite these record highs, Indian consumers haven’t shied away from gold. The report notes that investment demand and festive jewellery purchases have powered the market’s revival, while ETFs and imports reached multi-year highs in September.

 

The festive season began on a strong note, with demand surging for both jewellery and physical gold investments.

While the high price tag has led buyers to opt for lighter, lower-carat pieces, wedding-related purchases have kept sales buoyant.

 

Retailer trends show a clear divide:

 

Large chain jewellers report strong demand and rising revenues (up 6.5% to 63% year-on-year).

 

High-end boutiques catering to wedding shoppers have seen little slowdown.

 

Smaller independent jewellers are struggling with weak footfall and price-sensitive customers.

 

Old gold exchange offers, lightweight designs, and digital promotions have helped offset the affordability squeeze.

 

Gold ETFs See Record Inflows

 

Investors are also piling into gold ETFs, marking their biggest inflow ever in September — ₹83.6 billion (US$947 million), a 282% monthly jump. Assets under management (AUM) in gold ETFs hit an all-time high of ₹901 billion, with over 6.3 lakh new investor accounts added in a single month.

 

This surge reflects both retail participation and rising interest from high-net-worth and corporate investors, who now hold over 90% of total AUM.

 

Imports and Reserves on the Rise

 

India’s gold imports jumped to a 10-month high of US$9.16 billion in September, up 77% from August, driven by festival-season stocking and renewed investor demand. Meanwhile, the RBI added 0.2 tonnes of gold to its reserves, bringing total holdings to 880 tonnes — though 2025 purchases remain subdued compared to last year.

 

The World Gold Council expects strong festive and wedding-season demand to continue through year-end.

Supportive factors include:

 

Low inflation (1.54%), leaving consumers with higher disposable income.

 

GST cuts, making jewellery more affordable.

 

Renewed investor interest amid global uncertainty.

 

"The early onset of the festive season (September vs. October last year) and strong wedding demand helped to partially offset the impact of last year’s high base. Targeted marketing campaigns, promotional initiatives, and customer-centric purchase schemes – such as old gold exchange offers, lightweight options and curated product launches – further supported consumer momentum. Retailers reported a notable uptick in demand for lighter, lower-carat jewellery as consumers adapted to higher prices. Meanwhile old gold exchange programs remained a significant sales driver across retailers," noted the report.

 

Retail expansion also stayed strong, with leading players adding between five and 34 new stores during the quarter, including franchise and international formats.