Gold Demand Outlook: Jewellery Buying Weakens, But ETF Investment Demand Remains Strong

Gold’s physical market is showing a shift in demand patterns, with domestic jewellery demand taking a back seat while investment demand remains strong. Kunal Shah, Head of Commodity Research, Nirmal Bang, explains the signals emerging from the physical gold market and highlights the growing importance of investment flows. While jewellery demand may remain weak amid changing consumer sentiment and high gold prices, gold ETFs continue to see encouraging interest from investors. This divergence between physical consumption and financial investment demand could remain an important factor for gold prices going forward. The key takeaway is that investment demand is continuing to support the broader bullish outlook for gold.