Gold, silver jewellery demand weakens sharply in December 2025

Mon Jan 05 2026

Gold sales fell 35–40 percent year-on-year (YoY) in December 2025, while silver jewellery sales declined 15–20 percent. However, demand for silver bars and coins continued to grow by 15–18 percent, according to the India Bullion & Jewellers Association (IBJA).

This comes amid futures prices of precious metals on MCX hit fresh peaks last month, with gold price surge approximately 84 percent to Rs 1,40,465 per 10 grams of 24-carat purity, and silver by nearly 178 percent to Rs 2,54,174 per 1 kilogram as recorded on December 26, 2025.

IBJA National Secretary Surendra Mehta said, “Gold sales have declined by 35–40 percent year-on-year in December 2025, while silver jewellery sales fell by 15–20 percent during the same period, even as demand for silver bars and coins continued to rise by 15-18 percent.”

Typically, there would be 100 percent sales growth in gold and silver during this time of the year, driven by the wedding season in India.

The sale of precious metals also declined in November 2025, with gold sales dropping sharply by 35 percent and silver by 10 percent year-on-year.

Why are gold and silver sales declining?

Gold and silver prices have had a perfect run-up in 2025, buoyed by global uncertainty, geopolitical tension, and rate cuts across central banks, especially by the US Fed.

However, high prices are keeping buyers away due to the fear of overpaying. Analysts say that jewellery sales for gold and silver softened, primarily due to elevated prices reaching record highs, which pushed affordability out of reach for many retail buyers.

“Rapid price appreciation encourages consumers to defer purchases, waiting for consolidation or corrections. Additionally, high prices diverted investor interest toward exchange-traded products and other digital investment formats, thereby reducing demand for traditional jewellery,” said Renisha Chainani, Head of Research, Augmont.

She further reasoned that seasonal buying patterns also play a role, as festive and wedding demand have already been front-loaded earlier in the year. “Finally, macro uncertainties and tighter discretionary spending among households further constrained retail jewellery offtake despite underlying cultural demand,” said Chainani.

Gold and silver price outlook

The price of gold today (January 5) stood at $4,391 an ounce at the spot market, while the domestic futures price was recorded at Rs 1,37,795 per 10 grams of 24-carat purity. Meanwhile, silver traded at $75.34 per ounce and the futures price at Rs 2,46,198 per kilogram.

The Augmont Bullion report suggests that increased geopolitical tensions across many global flashpoints have bolstered gold and silver's status as preferred safe-haven investments.

The prices are expected to appreciate further, fueled by ongoing US-Venezuela tension as well as the expectation of another Fed rate cut scheduled this month.

The report noted that the recent rally in gold began around $3,400 in August 2025 and reached $4,400 in October 2025. The advance then retraced 50 percent to $3,900 before extending again by 61.8 percent to $4,580 in December 2025. Fibonacci extension, a technical analysis tool used by traders, suggests that $4,750 and $4,970 will be significant resistance in the next few months. Strong support lies around $4,300.

Silver rally started from $45 in October and extended up $82.7 in December 2025. Fibonacci extension suggests that this rally can extend further towards $88.60, $99 and $107 in the coming few months of 2026. Strong support lies at $64 per ounce.

Source: https://www.moneycontrol.com/