India’s Gold Market Shows Enduring Strength Amid Rising Global Prices and Digital Adoption
2026 starts. India gold market stays strong. It shows constant demand. Several factors drive this force: unsettled politics, investment charm, changing buyer tastes, and tech updates. Data and market views reveal record trends. Gold now fills a main role in both investments and daily use.
Gold Prices Scale New Heights on Global Uncertainty
Gold prices spike worldwide. In early January, prices jumped by almost 6% and passed US$4,600 per ounce. Prices climbed 67% in 2025 amid global risks and policy shifts. In India, prices matched this rise, hitting about INR139,799 per 10 grams. The world gold group notes funds moving into gold ETFs push prices further.
Domestic Demand Remains Resilient Despite Price Hurdles
In India, demand does not drop even as prices rise. Buyers now pick lighter gold jewellery and pieces with 18k and 14k purity. Wedding purchases continue to keep demand high. Many consumers trade old jewellery for new pieces; some shops see such exchanges make up 40% of sales. Shops now use short, clear stock plans to pick designs that suit buyer tastes and clear stock fast.
Jewellery Retailers Post Strong Revenue Growth
Companies like Titan, Kalyan, and PC Jewellers show revenue jumps of 37% to 51% in late 2025. Prices of sold items rose over 15%, though item counts fell. Sales in plain gold jewellery and gold coins grew quickly. Digital channels grew fast too, with some shops seeing over 100% revenue gains. This pattern shows a broader buyer base and changing habits.
Indian Gold ETFs Hit New Highs, Expanding Investor Base
Money into Indian gold ETFs hits record marks. In December 2025 alone, inflows reached INR116 billion. This trend continued for eight straight months, and total holdings hit 95 tonnes. Over 2025, net inflows reached INR430 billion, and assets hit INR1.28 trillion. India’s share of global gold ETF assets rose from 1.9% to 2.5%, while investor accounts grew by 60% from last year. Many now see gold ETFs as a good mix in their portfolios.
Digital Gold Purchases Gain Traction
Digital gold grows fast. In 2025, sales jumped from INR8 billion in January to INR21 billion by year-end. Around 13.5 tonnes of gold were bought through digital channels. This trend wins new and young buyers with its ease and clear access. In November 2025, SEBI noted that digital gold products lie outside the usual market rules. The fast rise calls for soon adding check measures.
Reserve Bank of India Slows Gold Purchases
RBI bought 72.6 tonnes of gold in 2024; in 2025, this number dropped to only 4 tonnes. Still, RBI gold reserves grew to 880.2 tonnes. Rising prices helped gold take up 16% of foreign exchange reserves, up from 10%. RBI now moves carefully in a market where prices stay high.
Gold Imports Reflect Seasonal and Price Dynamics
Gold import data shows mixed results. In December 2025, the value of imports reached US$4.1 billion while volume fell from 48 tonnes to around 35–40 tonnes. High landed costs and less buying during the wedding season explain the drop. Over the year, import values stayed near US$59 billion even as volume fell by more than 20%.
Looking Ahead: Experts expect that upcoming festivals and weddings will help push jewellery sales. In contrast, investment buying through gold ETFs and digital gold will shape the market most. Technology, buyer shifts, and market forces now join to keep gold at the heart of India’s investment and cultural life.
—
📝 About This Article
This article was generated by Hivebox AI
—
⚠️ Disclaimer
This content is for informational purposes only and does not constitute financial or investment advice.
Please consult with a qualified financial advisor before making any decisions related to investments, markets, or assets.
—
Note on Accuracy & Liability
While we strive to provide accurate and up-to-date information, neither Hivebox AI nor AuCan Gold guarantees completeness, reliability, or suitability.
Use this content at your own risk. Neither party assumes liability for any losses you may incur.
—
Thank you for reading.
