18-12-2025

- Gold prices in India remain near record highs. Due to the rally in the international market and the weakening rupee, gold prices in the domestic bullion market have also seen a sharp increase. Despite the high prices, the market has not weakened significantly, and the trend for gold remains strong.

- Due to continuously rising gold prices, demand for jewelry, in terms of volume, is under pressure. Rural and mid-segment buyers, in particular, are postponing purchases due to the high prices. Although the total value of the jewelry business remains stable due to the high prices, a decline in actual consumption is evident.

- Investment-based demand has provided significant support to the market. Strong buying is being observed in bars, coins, and other investment products. Due to global uncertainty, inflation concerns, and expectations of interest rate cuts, investors are prioritizing gold as a safe haven asset and maintaining their investments.

18-12-2025

- Indian Gold ETFs have seen record investments this year. Although the pace of inflows slowed slightly in November, total holdings and AUM reached new highs. This clearly indicates that investors` preference is rapidly shifting towards financial gold alongside physical gold.

- The World Gold Council also reported that while the RBI`s new gold purchases have been slow, the total value and share of gold in India`s foreign exchange reserves have increased due to the higher prices. This is considered a positive sign for India`s financial stability.

- Gold imports saw a sharp decline in November, mainly due to weaker demand after the festive season. Additionally, the period from mid-December to mid-January is traditionally considered inauspicious, which may further impact jewelry demand.

18-12-2025

🔸 Gold imports saw a sharp decline in November. After three consecutive months of increases, imports fell by 73% month-on-month and 59% year-on-year to approximately $4 billion, mainly due to weaker demand after the festive season. Import volume during this period was estimated to be between 32-40 tons. Since the beginning of the year, total gold imports have reached $55 billion, a 2% increase compared to last year. However, in terms of volume, imports have decreased by nearly 20% to approximately 580 tons, clearly indicating that the increase in import value is solely due to higher prices.

📌 Overall, the Indian gold market is currently driven more by investment demand than by jewelry demand. Despite high prices, strong investment demand is expected to continue supporting gold prices in the coming period.