Annual Indian gold demand to decline amid high prices of yellow metal — Heraeus

Heraeus analysts note that despite gold pulling back from April highs, prices of the yellow metal remain high. This could further depress Indian demand. 

The country's gold consumption fell 15% to 118 tons in the first quarter of 2025. Additionally, preliminary data shows that imports in April and May dipped 27% and 38% on an annual basis, respectively. Gold supplies to India are expected to pick up towards the end of the summer due to holidays. However, a further rise in prices over the next month may weigh on imports and consumption in August, leading to a decline in annual Indian gold demand this year, says Heraeus. 

Besides, analysts forecast silver consumption to weaken due to an expected slowdown in new installations of solar panels in China. The record increase in May was a result of Chinese companies rushing to complete construction before regulatory changes take place, limiting the ability to sell power to the grid. This shift could reduce incentives for solar power capacity expansion in the country in the second half of the year.