India's gold imports hit 2-year low as prices reach record high

India's gold imports plunged 40% year-on-year in June to just 21 tons, their lowest level since April 2023, as domestic prices soared to unprecedented levels. Government and industry sources attributed the sharp decline to waning consumer demand amid record costs.

The import value fell to $1.84 billion from $2.48 billion a year earlier. Cumulative imports for the first half of 2025 dropped 30% to 204.1 tons, marking the weakest six-month performance since 2020.

Domestic gold prices reached an all-time high of 101,078 rupees ($1,177.15) per 10 grams in June, representing a 27% annual increase. Market analysts, including Mumbai-based wholesaler Ashok Jain, anticipate continued weak demand through July as prices remain elevated.

The price surge has driven investors toward silver, with imports of the white metal nearly doubling year-on-year to 197 tons in June as its returns outpaced gold's performance.