Gold Shines Brighter, Hits Record High Prices In FY25; Imports Continue To Soar

India's love for gold remained undeterred in FY25, even as prices climbed to record levels. In spite of a sharp 33.78 per cent surge in gold prices during the 2024-25 financial year, households continued to buy the precious metal, with only a modest drop in demand by volume. Data from the Department of Commerce showed that gold imports in value terms reached $58.01 billion in 2024-25, marking a $12.47 billion increase over the previous year and reflecting a 27.38 per cent year-on-year rise, reported The Financial Express.Imports Hold Steady As Global Prices SoarWhile the value of gold imports rose significantly, the volume of imports slipped just 4.79 per cent, down to 757.15 tonnes from 795.32 tonnes in the previous year. This marginal contraction suggested that Indian buyers were not severely deterred by higher prices. Some of the dip in volume can also be attributed to weaker demand from the export side. Gold jewellery exports saw a decline, which impacted the overall volume of gold brought into the country.Globally, consumers faced similar headwinds. According to the World Gold Council in 2024, the gold demand for jewellery declined 11 per cent in comparison to the year-ago period, because the unrelenting gold price strength impacted the ability of consumers worldwide to buy. India, however, showed notable resilience, with only a 2 per cent dip in demand compared to a significant 24 per cent decline in China.Also Read : Foreign Investors Pump Rs 8,500 Crore Into Indian Equities This WeekPolicy Tweaks And Festive Buying Fuel SpikesTwo notable spikes in India’s gold demand occurred in August and November 2024. The August surge followed the Union Budget presented by Prime Minister Narendra Modi’s government in July, which slashed gold import duties from 15 per cent to 6 per cent. November’s uptick aligned with the festive season, traditionally a strong period for gold purchases.The broader price trajectory of gold has been steadily upward since October 2022, but the trend steepened dramatically after November 2024. That month, Donald Trump returned to the US presidency following the elections. Analysts noted that investors are depending on gold to ride the uncertainty spread in global financial markets in the aftermath of Trump's tariff strategies.

India's love for gold remained undeterred in FY25, even as prices climbed to record levels. In spite of a sharp 33.78 per cent surge in gold prices during the 2024-25 financial year, households continued to buy the precious metal, with only a modest drop in demand by volume.

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push(function() { googletag.display("div-gpt-ad-9167143-2"); }); },ad_unit_fire_time) }); Data from the Department of Commerce showed that gold imports in value terms reached $58.01 billion in 2024-25, marking a $12.

47 billion increase over the previous year and reflecting a 27.38 per cent year-on-year rise, reported The Financial Express. Imports Hold Steady As Global Prices Soar While the value of gold imports rose significantly, the volume of imports slipped just 4.

79 per cent, down to 757.15 tonnes from 795.32 tonnes in the previous year.

This marginal contraction suggested that Indian buyers were not severely deterred by higher prices. Continues below advertisement window.addEventListener("load", function() { let ad_unit_fire_time = 1000; if(ad_delay_time_abp > 0){ ad_unit_fire_time = parseInt(ad_delay_time_abp) + 500; } setTimeout(function () { googletag.

cmd.push(function() { googletag.display("div-gpt-ad-1253031-3"); }); },ad_unit_fire_time) }); Some of the dip in volume can also be attributed to weaker demand from the export side.

Gold jewellery exports saw a decline, which impacted the overall volume of gold brought into the country. Globally, consumers faced similar headwinds. According to the World Gold Council in 2024, the gold demand for jewellery declined 11 per cent in comparison to the year-ago period, because the unrelenting gold price strength impacted the ability of consumers worldwide to buy.

India, however, showed notable resilience, with only a 2 per cent dip in demand compared to a significant 24 per cent decline in China. Also Read : Foreign Investors Pump Rs 8,500 Crore Into Indian Equities This Week Policy Tweaks And Festive Buying Fuel Spikes Two notable spikes in India’s gold demand occurred in August and November 2024. The August surge followed the Union Budget presented by Prime Minister Narendra Modi’s government in July, which slashed gold import duties from 15 per cent to 6 per cent.

November’s uptick aligned with the festive season, traditionally a strong period for gold purchases. The broader price trajectory of gold has been steadily upward since October 2022, but the trend steepened dramatically after November 2024. That month, Donald Trump returned to the US presidency following the elections.

Analysts noted that investors are depending on gold to ride the uncertainty spread in global financial markets in the aftermath of Trump's tariff strategies..