India Gold Prices Soar with Rising Domestic Premiums, Says WGC
Gold | 2025-10-21 12:09:49
The report noted that gold price rally intensified further, amid rise in domestic premiums.
By Paul Ploumis
SEATTLE (Scrap Monster):
The World Gold Council (WGC) released its latest India gold market update, highlighting a strong rally in gold prices and robust demand during the festive season.
ALSO READ:
WGC: Chinese Wholesale Gold Demand Dipped in August
WGC: Investor Interest in Gold ETFs Remained Elevated
The report revealed that international gold prices have surged 58% year-to-date, marking the largest increase in 45 years. Reflecting this trend, domestic gold prices in India rose 66% year-to-date, fueled by a weakening Indian rupee. Domestic premiums climbed to $25 per ounce, reaching their highest level since July 2024.
Investment and Jewellery Demand Remains Strong
Kavita Chacko, Research Head at India WGC, noted that both investment demand and jewellery sales remained robust at the start of the season, with a noticeable spike in wedding-related purchases, coinciding with the country’s wedding season.
Record Gold ETF Inflows and Rising Imports
In line with global trends, Indian gold ETFs recorded their largest-ever monthly net inflows in September, totaling US$947 million, a 282% increase from the previous month. Meanwhile, the Reserve Bank of India (RBI) added 0.2 tonnes to its gold reserves, bringing total holdings to 880.2 tonnes. India’s gold imports reached US$9.16 billion, the highest level in ten months.
The WGC report underscores the continued appeal of gold in India, driven by festive and wedding-season demand, strong investment interest, and rising global gold prices.
POLL
With gold prices surging 66% year-to-date in India, what is your outlook for the future?
Frequently Asked Questions
- How have gold prices performed in India and internationally this year?
International gold prices have surged 58% year-to-date—the largest rise in 45 years—while domestic gold prices in India increased 66%, supported by rupee weakness and higher premiums, which reached $25/oz, the highest since July 2024.
- What is driving the demand for gold in India?
Investment demand and jewellery sales remain robust, particularly for wedding-related purchases, aligning with the festive and wedding season.
- What actions did the Reserve Bank of India (RBI) take regarding gold?
The RBI added 0.2 tonnes to its gold reserves, bringing total holdings to 880.2 tonnes.
