Gold jewellery demand fell 19 per cent in the third quarter due to record-high prices, but values rose as consumers spent more on jewellery, according to the World Gold Council (WGC).

In its Gold Demand Trends report for Q3 2025, WGC noted that gold jewellery volumes declined across all markets, with global demand falling to its weakest for a third quarter since the Covid-hit low of 2020. 

Total gold jewellery consumption volumes amounted to 371.3 tonnes, down from 460t in the third quarter of 2024. WGC attributed the decline to the record gold price environment.

Demand in value terms, however, grew 13 per cent year on year, reaching US$41 billion. 

China

The report indicated that headwinds from the high gold price and lacklustre consumer sentiment pushed gold jewellery consumption in China down to 84t, the weakest Q3 since 2007. In value terms though, Chinese consumers spent RMB66 billion (around US$9 billion) on gold jewellery in the third quarter, its second-highest Q3 spend ever.

According to WGC, demand began to recover toward the end of August, supported by Chinese Valentine’s Day gifting. 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 24-karat jewellery suffered the sharpest losses, while lighter-weight pieces were relatively resilient. Hard Pure Gold items continued to outperform relative to others. WGC said greater affordability, as well as innovative designs and the creative use of materials like gems and enamel, helped drive this outperformance. 

India

According to the report, India had its weakest third quarter for jewellery consumption since 2020, at 118t. 

“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,” said WGC. 

High gold prices increased demand for lighter-weight and lower-carat pieces, but consumers were also increasingly willing to exchange old gold jewellery, rather than buy new gold items outright, it noted. 

WGC said acceptance of 18-karat plain gold jewellery increased across many parts of the country, at the expense of more traditional 22-karat. But demand from wealthier consumers held firm, reflected in relatively strong sales of high-value jewellery items.