Gold Demand Trends: Q3 2025

Gold jewellery volumes plunge, while values soar 

• Surging, record-high gold prices in Q3 resulted in a sharp y/y drop in gold jewellery consumption
• Global demand fell to its weakest for a third quarter since the Covid-hit low of 2020
• Value measures of demand, in contrast, were almost universally higher, as consumers spent more on jewellery.

Q3 jewellery demand fell y/y across all markets, almost without exception. While the two market giants – India and China – each saw a seasonal q/q uplift in demand, the y/y picture was decidedly weak. The record gold price environment was the primary reason for the decline, simply due to affordability. 

In contrast, the value of jewellery consumption – at US$41bn – was 13% higher y/y.

Gold jewellery consumption is 18% lower y-t-d at 1,095t, although so far remains comfortably above the 2020 low of 894t. The value of gold jewellery bought globally y-t-d has reached US$112bn, a record for our data series and 14% above the US$99bn from 2024.

China

Headwinds from the high gold price and lacklustre consumer sentiment pushed gold jewellery consumption down to 84t, the weakest Q3 since 2007. This brought y-t-d Chinese gold jewellery consumption to 278t, down by a quarter compared to Q1-Q3 2024.

The q/q comparison, however, shows an uptick in demand, primarily due to seasonal factors. 

And the picture looks different when we consider demand in value terms. In Q3, Chinese consumers spent RMB66bn (US$9bn) on gold jewellery – the second highest Q3 spend ever, just short of the Q3’23 record of RMB71bn (US$10bn).

After a typically slow July, demand began to recover toward the end of August, supported by Chinese Valentine’s Day gifting.¹ Furthermore, a period of relatively stable gold prices in July and August allowed consumers time to adjust to the higher price level. Wedding-related gold purchases ahead of the early October Golden Week – a popular period for marriages – also boosted demand to some extent.

Conventional and more heavily-designed 24k jewellery suffered the sharpest losses, while lighter-weight pieces were relatively resilient. Hard Pure gold items continued to outperform relative to others; greater affordability, as well as innovative designs and the creative use of materials like gems and enamel, helped drive this outperformance. Retailers also increased their efforts to promote items with high premiums and intricate craftsmanship. 

Seasonal patterns suggest further demand pick up in Q4, but demand volumes are likely to stay well below long-term averages as the gold price remains extremely elevated. The surging international gold price disrupted gold jewellery sales during the early October eight-day Golden Week holiday. Moreover, a later-than-usual Chinese New Year’s holiday next year may delay both retailer replenishment and lunar year-end consumer purchase – a traditional peak season for gold.²

On the bright side, potential further easing of monetary or fiscal policy, as well as the possibility of a stabilising gold price, could offer some support for gold jewellery demand. 

India

India had its weakest third quarter for jewellery consumption since 2020, at 118t, reflecting the surging local gold price, which surpassed the Rs117,000/10g level during the quarter.

The value measure of demand was more resilient. Q3 spending of Rs1,143bn (US$13bn) was on a par with the very strong quarter of Q3’24, when demand jumped to a nine-year high following a cut in Indian import duties. The value of demand y-t-d has reached a record Rs2,513bn (US$29bn). 

The domestic gold price rise was magnified by local currency depreciation during the quarter. This, and a lack of major festivals and weddings, kept a lid on jewellery buying during July and August. 

Demand was ignited in September, however; the accelerating price rally triggered consumers to purchase before prices rose further. Anecdotally, the end of Shradh (a 15-day inauspicious period for gold buying) on 21st September saw a rush of demand.

The rising price has not only increased the demand for lighter-weight and lower-carat pieces, but consumers are also increasingly willing to exchange old gold jewellery, rather than buy new gold items outright. Furthermore, there seems to be evidence that demand is shifting away from jewellery towards lower-margin, small investment products. 

18k plain jewellery has seen increased acceptance across many parts of the country, at the expense of more traditional 22k. But demand from wealthier consumers has so far held firm, reflected in relatively strong sales of high-value jewellery items.  

Q3 also saw a continuation of the trend for Indian consumers to use their gold jewellery as collateral for loans. Data suggests that, so far this year, consumers have pledged at least 220t of gold jewellery in this way, helping to keep a lid on the domestic supply of recycled gold.

Middle East and Turkey

The sharply rising local gold price kept jewellery demand in Turkey under considerable pressure in Q3. Demand of 26t during the first three quarters is on a par with that of 2021 – a year in which the gold price averaged US$1,769.6/oz.

Consumer inflation in Turkey remains very punitive, eroding consumer sentiment and purchasing power alike. Continued domestic and regional geopolitical tensions have also contributed to weakness in the market. 

Demand was similarly weak for virtually all markets across the Middle East, with sharply higher gold prices impacting affordability – and encouraging some selling-back of high-carat jewellery – and regional geopolitics negatively affecting consumer sentiment. Iran was the exception, where a y/y increase in gold jewellery demand was motivated by safe-haven investment buying. 

US and Europe

Jewellery demand in the US extended the downtrend that has been in place since Q2’22. Demand of 25t was the weakest for a third quarter in our data series back to 2000. 

Contrastingly, demand measured in value terms continues to go from strength to strength. US gold jewellery spend grew to US$3bn in Q3 – the ninth consecutive y/y increase.

Falling volumes were due to the high and rising gold price, which continued to impact affordability, with consumers shifting to lower-carat, lighter-weight items as well as reducing their frequency of purchase.  

Markets across Europe witnessed universal declines in jewellery volumes, with France seeing the most pronounced contraction. Mirroring the global pattern, demand in value terms was positive, showing that consumers were prepared to spend more on gold jewellery, albeit that this translated to lower volumes. 

ASEAN markets

ASEAN markets for which we report data universally witnessed declines in gold jewellery volumes in Q3 as record high prices squeezed consumer purchasing power. For much of the region, demand in value terms made double-digit y/y gains, in contrast to the notable weakness in tonnage volumes.

Indonesia, was the only country to also see a y/y fall in the value of demand. Constrained by surging gold prices and higher costs of living amid challenging economic conditions, consumers continued to shift towards low-carat items.  

Rest of Asia

A double-digit decline in Japanese jewellery demand resulted in the weakest Q3 on record, at just 3t. Demand for kihei chains (plain chains often bought as a quasi-investment) was healthy and offered some support, with reports suggesting this trend gathered pace in October as the price rally surged and domestic demand exploded.

The long-term downtrend in South Korean jewellery demand continued in Q3. Consumption was supported in part by the wedding season, and by consumers bringing forward purchases in anticipation of yet higher prices. But nevertheless, the continued trend for lower-carat items eroded volumes. 

Australia

Australian gold jewellery demand in Q3 registered its ninth consecutive quarter of y/y decline. The US dollar value of demand was opposingly positive, as the high price supported value but supressed volumes.

Footnotes

¹Chinese Valentine’s Day (known as the Qixi festival) is celebrated on the seventh day of the seventh lunar month. In 2025, it fell on 19 August.

²Lunar New Year falls on 17 February 2026.