Investment demand offsets weak gold jewelry sales in India — WGC

According to Kavita Chacko of the World Gold Council (WGC), India's gold market maintained steady investment demand in June despite weaker jewelry sales and lower imports. Gold prices rose 0.3% in June and gained another 2% in July, supported by geopolitical tensions and a weaker dollar.

High gold prices have dampened jewelry demand, prompting consumers to shift toward lighter-weight pieces. However, investment demand remained strong, with gold-backed exchange-traded funds (ETFs) seeing inflows of 20.8 billion rupees ($242 million), the highest since January 2025. Meanwhile, the Reserve Bank of India added 0.4 tonnes to its gold reserves, pushing them to a record of 880 tonnes.

Gold imports fell 26% year-on-year to $1.8 billion as elevated prices softened demand. However, Chacko expects a recovery starting mid-August, driven by seasonal festival demand.