Gold demand turned weak in India, China in November
In India, discounts on domestic gold prices increased from $11 per ounce at the start of November to $30 as of December 12
Demand for gold jewellery turned weak in India and China in November, though investments in physically-backed gold exchange-traded funds (ETFs) continued, two World Gold Council (WGC) research heads said.
In India, discounts on domestic gold prices increased from $11 per ounce at the start of November to $30 as of December 12. This partly reflected a slowdown in jewellery demand, said Kavita Chacko, research head, India, WGC.
Another pointer to slack demand in India was a sharp 73 per cent month-on-month decline in imports in November. Shipments at $4 billion were 59 per cent lower year-on-year. It was the first fall in demand and imports after three months of festive demand,
China’s gold imports in October declined to 36 tonnes against 57 tonnes in September and 43 tonnes a year ago, said Ray Jia, WGC’s research head, China.
Weakened jewellery sector
“This sharp decrease can be attributed to the moderation in post-festive demand. Import volumes for the month are estimated between 32 tonnes and 40 tonnes,” said Chacko.
In China, gold withdrawals from the Shanghai Gold Exchange (SGE) – a proxy for wholesale gold demand in China – fell 32 per cent month-on-month and 15 per cent year-on-year to 84 tonnes in November, the weakest November since 2009, said Jia.
“This is likely due mainly to a significantly weakened gold jewellery sector: impacted by the recent VAT reform, rising gold jewellery costs,” he said.
India and China account for 50 per cent of the global demand for the yellow metal. At the same time, investments in gold ETFs continued in November, although they were somewhat mixed in both nations.
Slow ETFs inflow
In India, investments in gold ETFs were at a slower pace in November than in the preceding two months. “Net inflows totalled ₹3,740 crore ($421 million), about half of October. Still, it was above the average monthly inflows of ₹2,760 crore ($315 million) in the first 10 months of the year.
Chinese gold ETFs attracted 16 billion yuan ($2.2 billion, 17 tonnes) in November, their third consecutive monthly inflow. It was well above the 2024 monthly average of 2.6 billion yuan.
Chacko said: “Gold demand in India continues to diverge: sustained strength in investment demand contrasts with weakness in the jewellery segment.”
Feedback from stakeholders, mainly manufacturers and retailers, indicated that gold jewellery volumes are lower year-on-year, despite the wedding season. This was because higher prices and affordability weighed on consumption.
Volumes in the mid- and small-ticket segments, which underpin mass demand, remained pressured. “Although demand in the luxury segment remains strong, it is insufficient to offset the broader volume weakness,” she said.
Chinese futures volume falls
Price volatility is further constraining discretionary and everyday jewellery purchases. The divergence was evident across the retail landscape.
“Large and medium-sized jewellers continue to report relatively healthy sales, supported by higher ticket prices and need-based wedding purchases, whereas small and standalone jewellers are under pressure,” said the WGC India research head.
Chacko said two new gold ETFs were launched in December, taking the total number of gold ETFs in India to 25. “Seven gold ETFs have been launched so far in 2025, underscoring the growing depth of the segment,” she said.
Jia said gold futures trading volumes in China fell 29 per cent month-on-month in October to 461 tonnes a day on average in November – mainly due to the lower gold price volatility.
Published on December 20, 2025
