Indian gold investment demand hits record $10 billion in Sep quarter: WGC

Rising gold prices are spurring Indian investors to buy bars and coins, with record purchases worth $10 billion in the September quarter lifting their share of total consumption to an all-time high, the World Gold Council said on Thursday.

Gold has become a mainstream asset as investors diversify portfolios and boost allocations, even among those with little prior exposure, said Sachin Jain, CEO of WGC's India operations.

"We believe investors' interest in gold will continue and grow in the coming quarters," he said.

Investment demand in the world's second-largest gold consumer jumped 20 per cent year on year in September quarter to 91.6 metric tonnes, or 67 per cent in value terms to $10.2 billion, the WGC said.

Overall gold consumption, however, fell 16 per cent to 209.4 tonnes as jewellery demand slumped 31 per cent to 117.7 tonnes due to record-high prices.

Local gold prices, which hit a record 132,294 rupees per 10 grams earlier this month, have surged 56 per cent so far in 2025 after a 21 per cent rise last year.

Investment demand accounted for 40 per cent of total gold consumption in the first nine months of 2025, the highest on record, the WGC said.

Physically backed gold exchange-traded funds are also gaining traction amid the rally, Jain added.

Gold ETFs drew record monthly inflows of 83.63 billion rupees in September, data compiled by the Association of Mutual Funds in India (AMFI) showed.

Demand in the December quarter is expected to exceed that of the September quarter, supported by festivals and the wedding season, said Jain.

However, despite this seasonal recovery, total gold demand in 2025 could range between 600 and 700 metric tonnes, the lowest since 2020, and down from last year's 802.8 tonnes, Jain said.