“Stronger investment demand in the world’s second-largest consumer of gold partly offset a decline in jewellery buying, hit by a rally in prices, helping keep overall demand stable,” the WGC said.

“For the first time investment demand surpassed jewellery demand,” Sachin Jain, chief executive of the WGC’s Indian operations, told Reuters.

“Investment demand will become increasingly prominent in the coming quarters, with both financial and retail investors showing more interest in gold,” Jain said.

Investment demand in the March quarter surged 52% from a year earlier to 82 metric tonnes, while jewellery demand fell 19.5% to 66 tonnes, the World Gold Council (WGC) said in a report published on Wednesday.

Total gold consumption in the country rose 10.2% to 151 metric tonnes during the quarter, according to the data.

For the first time, investment demand accounted for a larger share of total consumption than jewellery, rising to 54.3% in the quarter.

Investment demand typically accounts for about a quarter of India’s total gold consumption, but rising prices have been prompting investors to buy coins, bars, and gold exchange-traded funds (ETFs).

“Inflows into gold ETFs jumped 186% in the March quarter from a year earlier to a record 20 tonnes,” the WGC said.

“Weak stock market performance in recent quarters has been drawing investors to gold ETFs, and the trend is likely to continue,” Jain said.

Domestic gold prices have nearly doubled since the start of 2025, while India’s benchmark Nifty 50 has risen 2.4% during the period.