India’s gold demand is projected to moderate in 2025 as soaring prices dampen jewellery consumption, the World Gold Council (WGC) revealed on Wednesday. Despite this decline, investment demand for the precious metal is expected to remain strong.  

According to Sachin Jain, CEO of WGC's Indian operations, gold consumption is likely to range between 700 and 800 metric tons this year. This marks a potential decrease from the 802.8 tons recorded in 2024 — the highest level since 2015.  

"Historically, rising gold prices impact jewellery buyers first," Jain said, noting that continued price volatility may further weigh on demand for gold ornaments.  

On Wednesday, domestic gold prices surged to a record 84,399 rupees ($968.62) per 10 grams, reflecting a 10% increase so far in 2025 after a 21% rise in 2024.  

"Households typically set fixed budgets for jewellery purchases, and these budgets do not increase in proportion to the rise in gold prices," Jain explained.  

While jewellery demand, which accounts for 70% of India’s total gold consumption, faces headwinds, investment demand is on the rise. In 2024, investment demand surged by 29% to an 11-year high of 239.4 tons, driven by the metal's strong returns.  

This trend is expected to persist, Jain noted, with growing interest in gold exchange-traded funds (ETFs), digital gold, and traditional forms like coins and bars.  

"Investment demand will likely continue to be robust as investors seek higher returns amid elevated gold prices," he added.