World Gold Council (WGC) said India saw a historic shift in gold demand in the March quarter, with investment demand exceeding jewellery consumption for the first time.
Investment demand in India jumped 52% year-on-year to 82 metric tons, while jewellery demand fell 19.5% to 66 tons as rising prices reduced consumer buying.
Total gold consumption in India still increased 10.2% to 151 metric tons. Investment demand made up 54.3% of total demand, becoming the dominant segment.
This shift comes as domestic gold prices have nearly doubled since the start of 2025, pushing consumers away from jewellery toward investment products.
Globally, total gold demand rose 2% year-on-year to 1,231 tonnes in Q1. However, the value of demand surged 74% to a record $193 billion due to higher prices.
Bar and coin demand climbed 42% to 474 tonnes, led by strong Asian investor activity. Gold-backed ETF inflows stood at 62 tonnes, below last year’s elevated levels.
Global jewellery demand dropped 23% in volume terms, but total spending increased 31% as higher prices lifted overall value. Technology demand edged up 1% to 82 tonnes.
Central banks increased gold buying to 244 tonnes in Q1, up from 208 tonnes in the previous quarter, marking the fastest pace in over a year.
Poland, Uzbekistan and China were the largest buyers, while Turkey, Russia and Azerbaijan sold an estimated 115 tonnes for policy-related reasons.
This net buying came despite price volatility, with gold hitting a record near $5,600 in late January before falling about 12% in March. The WGC noted that a significant portion of central bank purchases remains unreported and is estimated using trade data and research.
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