July 17, 2025 - This year, gold prices have surged by nearly 26%, pushing the price of 24‑carat, 10 grams to around Rs 100,000. The steep increase has led consumers to step back from gold purchases.

According to the India Bullion & Jewellers Association (IBJA), gold sales in India dropped by 60% in June 2025, falling to just 35 tonnes - the sharpest decline in volume since the COVID‑19 pandemic. India Bullion and Jewellers Association (IBJA) National Secretary Surendra Mehta acknowledged that demand shows no signs of immediate recovery, with many jewellery units cutting production by half, negatively impacting smaller players .

No Relief in Prices, Even in July

Even in July, gold prices remain high and volatile, offering no significant relief - keeping demand subdued. Consumers are now opting for lighter and more affordable 14‑carat jewellery. Industry bodies like IBJA are exploring measures such as hallmarking 9‑carat gold to attract buyers.

Wider Trend in Precious Metals

India’s gold imports in June fell by 40% to 21 tonnes, the lowest in two years, due to record domestic prices (₹101,078 per 10 g), as per reports. Gold import reduction is because of the high cost of gold which has led to fall in jewellery purchase.

By contrast, silver demand surged, and it has outpaced gold’s returns this year in cities like Ahmedabad owing to increasing industrial demand and tight global supply.

Impact and Outlook

High prices and economic pressures are keeping middle-class buyers and traditional events like weddings from making large purchases. While jewellery fabrication is slowing, investment demand (coins, bars, ETFs) remains more resilient

Source: Media Reports