Festive demand, GST reforms could boost India’s gold jewellery demand: Report
(source : ANI) ( Photo Credit : ani)
Gold Prices Soar to Record Highs: Will Festive Season Boost Jewellery Demand in India?
Gold prices have hit stunning new peaks, but that’s not stopping Indians from eyeing shiny buys this festive season. According to a fresh report from Mirae Asset Mutual Fund, factors like cultural traditions, rising consumer spending, and even GST reforms could drive up gold jewellery demand in India, despite the yellow metal’s sky-high rates.
India and China lead the global charge in gold jewellery demand, together making up more than 50% of the world’s total. The report points out that China’s urban jewellery market might bounce back soon, thanks to recovering consumer spending and government stimulus packages. However, there’s a catch: with gold prices hovering above $3,500-$3,600 per ounce, buyers could pull back if costs stay too steep. "Price elasticity might limit the demand recovery for gold," the report warns.
Looking ahead, experts stay cautiously optimistic. They predict gold prices could climb even higher from current levels, but watch for potential corrections triggered by market shifts.
Internationally, gold kept its impressive streak going in August 2025. It closed the month at $3,429 per ounce, up 3.9% for the month and a whopping 31% year-to-date, as per the World Gold Council. Right now, the yellow metal trades at a record just over $3,700 per ounce. This rally got a boost from a weaker US dollar, heavy investments in gold-backed ETFs, and ongoing geopolitical tensions around the world.
In India, the buzz is even stronger. On the Multi Commodity Exchange (MCX), gold prices sit around Rs 1,09,000 per 10 grams – a massive jump since early 2025. Indian markets have outperformed many others, showing solid investment interest and steady local demand even at these elevated gold rates.
Shifting to silver, the white metal has also shone bright. It broke past $30 per ounce in 2024 and hasn’t looked back. The report calls its trend "constructive," suggesting smart buyers could grab opportunities during short dips to support levels.
Silver’s demand gets a big lift from industry – about 60% of its total use comes from manufacturing. It’s a key player in semiconductors, 5G tech, Internet of Things (IoT) devices, and AI data centers. Some forecasts even predict more silver in AI servers. Plus, new uses in battery tech like silver-zinc and silver-ion systems, along with energy storage, could fuel long-term silver demand.
As the festive season kicks off, keep an eye on these gold price trends and silver opportunities – they might just sparkle up your investment plans!
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