India Surpasses China as World’s Largest Gold Consumer in 2024

In 2024, India’s jewellery consumption reached 563.4 tons, surpassing China’s 511.4 tons, solidifying India’s position as the world’s largest gold consumer in this sector. India’s total gold demand rose by 5% year-on-year, reaching 802.8 tons in 2024, up from 761 tons in 2023. This increase was driven by higher jewellery consumption and a significant rise in investment demand as buyers looked to take advantage of rising gold prices.

Decline in Gold Imports

Investment demand surged to 240 tons in 2024, compared to 185 tons in 2023, as retail buyers and investors sought to capitalise on the gold rally. Despite this, India’s gold imports decreased to 712.1 tons in 2024 from 744 tons in 2023, indicating a growing reliance on recycled gold and domestic supply.

Movement in Gold Prices

Gold prices soared by 28% in 2024 and have already increased by 11% in 2025, maintaining strong interest from investors who anticipate further price gains. The rally has been driven by geopolitical uncertainties, central bank purchases, and expectations of easing monetary policy, enhancing gold’s appeal as a hedge against inflation and currency fluctuations.

On February 5, 2025, gold prices hit an all-time high as China’s retaliatory tariffs on US imports raised trade war concerns, prompting increased demand for safe-haven assets. Amid ongoing trade tensions and market volatility, gold remains a key focus for traders and analysts.

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