As India raises gold import duty from 6% to 15% amid economic pressure and a weakening rupee, the jewellery industry is preparing for higher prices, evolving demand, and possible market disruption, discovers Khursheed Mistry.

Investment-led buying dominates festive season demand, with over 40 tons of gold sold in two days

Gold may surge up to 15% by December 2025 in a bullish scenario, reaching a peak of $3,839 per ounce, according to the World Gold Council (WGC).

Gold prices climbed further on Wednesday, edging closer to record highs, as investors sought safety following U.S. President Donald Trump’s announcement of sweeping tariff measures. The move, which escalates ongoing trade tensions, drove strong inflows into the precious metal

For generations, gold has held a revered place in Indian culture, symbolizing good luck and heralding prosperous times. This deep-seated cultural bond continues to thrive, even as gold prices soar to unprecedented levels

In October 2024, global gold ETFs experienced a sustained inflow of US$4.3 billion, extending a six-month streak of positive demand. North America and Asia led the inflow trends, contributing significantly to the overall growth in assets under management (AUM), which reached a record US$286 billion

As the festive season approaches, the Indian gold market is showing promising signs of recovery, despite facing challenges from record-high prices and recent fluctuations in demand

Investors are increasingly turning to gold ETFs amid the lack of new Sovereign Gold Bonds, driven by favorable tax changes and geopolitical uncertainties

The World Gold Council’s Q2 2024 Gold Demand Trends report highlights a significant surge in global gold demand, reaching a record 1,258 tonnes, a 4% increase year-on-year and marking the strongest Q2 performance in the Council's data series

Gold demand defies Q2 headwinds with year-on-year recovery in first half of 2022

WGC notes a strong gold ETF demand year-to-date despite outflows in June

The World Gold Council’s latest Gold Demand Trends Report reveals gold ETFs had their strongest quarterly inflows of 269t since Q3 2020, more than reversing the 173t annual net outflow from 2021, and driven in part by the rising gold price

Global gold ETFs saw net outflows of 173 tonnes or $9.1 billion, while India-based ETFs saw inflows of 9.3 tonnes or $595.3 million during the year

Jewellery and investment demand is expected to continue its post-pandemic recovery in the second half of the year