India's gold demand increased 10% year-on-year to 151 tonnes during the January-March quarter [1].
This surge reflects a shift in consumer behavior as geopolitical instability in West Asia drives investors toward safe-haven assets. The trend highlights the enduring role of gold as a hedge against global volatility and regional conflict.
Avinash Gupta, Vice Chair of the Gem & Jewellery Council (GJC), said these trends during a conversation with host Manisha Gupta. The discussion focused on how tensions in West Asia are influencing gold imports and buying patterns within India. Gupta and the host analyzed the broader jewelry market and the specific drivers behind the current demand spike.
Investment demand has emerged as a primary driver, topping traditional jewelry consumption [1]. While Indian consumers historically purchase gold for weddings and cultural ceremonies, the current climate has prioritized the metal's value as a financial safeguard. This transition suggests that macroeconomic fears are currently outweighing seasonal consumption patterns.
Industry experts are monitoring how continued volatility in West Asia will affect the flow of precious metals. The Gem & Jewellery Council continues to track how these external pressures impact domestic pricing, and import volumes. Gold remains a central pillar of the Indian economy, making it sensitive to shifts in international security and trade stability.
“India's gold demand rose 10% year-on-year to 151 tonnes”
The shift toward investment-led gold demand indicates a decrease in consumer confidence regarding traditional financial markets during geopolitical crises. By prioritizing gold as a hedge over jewelry for consumption, Indian buyers are signaling a risk-averse strategy in response to instability in West Asia, which may lead to sustained high import levels if regional tensions persist.
