Customers Bought Rs 94k Cr Worth Gold in March Qtr, Akshaya Tritiya Adds Rs 18k Cr

Chennai: Gold demand in the March quarter was down 15 per cent to 118 tonnes. However, value wise, demand went up by 22 per cent as Indians spent Rs 94,000 crore on the yellow metal in the last quarter. Akshaya Tritiya on Wednesday saw sales of around Rs 18,000 crore worth gold jewellery and other items.

Gold demand in the March quarter was down to 118.1 tonnes from 139 tonnes in the same quarter last year. However, higher gold prices saw the value going up to Rs 94,030 crore, up by 22 per cent from Rs 76,820 crore last year, as per the data of World Gold Council.

Jewellery demand was down by 25 per cent to 71.4 tonnes, while investment demand increased by 7 per cent to 46.7 tonnes. Gold imports too were up by 8 per cent to 167.4 tonnes.

Jewellers believe that key occasions like Akshaya Tritiya and the upcoming wedding season will continue to support consumer buying sentiment.

On Akshaya Tritiya, gold jewellery and other items worth Rs 18,000 crore were sold across the country, though the gold volumes at around 18 tonnes were 5 to 7 per cent lower than last year, said Saiyam Mehra, vice president, GJC.

Another Rs 2000 crore worth of silver jewellery and related items were sold on Wednesday. The prices, which fell from the Rs 1 lakh per 10 gm levels, supported customer buying. Customers bought light jewellery as token purchases, though jewellers saw high footfalls.

According to Colin Shah, MD, Kama Jewelry, people were seen investing heavily in gold coins in the backdrop of a landmark rise in gold prices.

“Gold retailers are optimistic about favourable buying behaviour through the rest of the festive season, despite ongoing tariff-related uncertainties. The 8 per cent rise in gold imports to 167.4 tonnes in Q1 2025 further reinforces this supply-side preparedness by Indian jewellery retailers. In contrast, gold recycling fell by 32 per cent to 26 tonnes, as consumers retained their holdings amid record-high prices,” said Sachin Jain, Regional CEO, India, World Gold Council.

WGC estimates that Indian gold demand for 2025 will be between 700-800 tonnes despite the prices going up.