The World Gold Council (WGC) has predicted that India’s gold consumption could drop to a 5-year low in 2025.
This week, there was a rise in demand for physical gold in India, mainly due to the recent drop in prices. In the international market, gold has fallen to its lowest level in a month.
This is the third straight week that gold prices have declined. Experts believe that the strong U.S. dollar is behind this trend — gold usually becomes less attractive when the dollar gains strength.
Gold Prices Crossed ₹1 Lakh Last Week
On August 1, the price of 24-carat gold in India was around ₹97,700 per 10 grams. Just a week earlier, it had touched ₹1,00,555 per 10 grams.
On August 2, gold saw a slight bounce after weak job data came out in the U.S. A Pune-based jeweler told Reuters that gold buying has increased this week compared to the last.
Falling Prices Spark Buying Interest
Jewelers say customers are now asking about price trends and even making small purchases. Falling international gold prices are pushing dealers to restock.
However, due to the weaker rupee, Indian buyers aren’t getting the full benefit of the price drop. Back in April, gold had hit an all-time high, which caused demand to fall sharply.
WGC Forecast: Demand May Hit 5-Year Low
According to the World Gold Council, India’s gold demand could fall to its lowest level in five years due to high prices. Rising prices have made jewelry purchases more difficult for many.
Meanwhile, in China, buyers are also taking advantage of falling prices — demand increases every time prices drop. Experts say if this price softness continues, investors might find it a good entry point.
Should You Invest in Gold Now?
It’s always smart to keep some gold in your portfolio. Gold acts as a safety net during sharp market downturns.
So far in 2025, gold has delivered a 26% return — much better than most stock market returns. But experts also warn that pressure on gold prices could continue for a while.
