MUMBAI, February 27 — India gold demand is expected to be increasingly driven by institutional investors and financial market infrastructure rather than households alone, David Tait, Chief Executive Officer of the World Gold Council, said on Friday at the Rising Bharat Summit.
Speaking at the event, Tait said structural forces are underpinning the rally in gold prices and shaping future demand patterns in India’s precious metals market. He pointed to geopolitics, interest rate trends, central bank purchasing, and concerns about global debt sustainability as key factors supporting demand for the metal.
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World Gold Council’s Perspective on India Gold Demand
Tait said the current phase of India gold demand is being influenced by a shift in investor behaviour and portfolio strategies, with pension funds, insurance companies and other large institutional capital players showing more interest in allocating to gold.
“Gold will continue higher based on several underlying reasons including global debt concerns, interest rate uncertainty and geopolitical tensions,” Tait said, highlighting the diversification role that gold plays for institutions.
He also noted that market infrastructure developments are making it easier for investors to hold gold in financial forms, such as gold-backed exchange-traded funds (ETFs), which have gained popularity among younger Indian investors.
Shifts from Household to Institutional Demand
The India gold demand landscape has traditionally been dominated by household purchases for jewellery and personal savings. However, Tait said institutional demand is likely set to play a larger role in coming years.
Institutional investors, once cautious about gold’s place within mainstream portfolios, are now increasingly embedding the metal as a strategic asset. Tait attributed this to a combination of regulatory developments and growing acceptance of gold within diversified investment strategies.
“Younger investors are also gravitating towards financial forms of gold ownership, particularly gold-backed ETFs, alongside traditional jewellery,” he said, underscoring a shift in the composition of demand beyond classic retail segments.
Central Banks Continue to Support Gold Demand
Central banks remain significant buyers of gold globally, reinforcing demand at institutional levels. Tait said most developing-economy central banks are continuing to accumulate gold as a portfolio diversifier and as a hedge against currency volatility and geopolitical risk, with little evidence of selling despite sharp price gains.
While global gold buying by official institutions has been a consistent feature in recent years, the emphasis on building institutional demand in India represents a potential turning point for gold’s status within the financial system.
Market Infrastructure and Regulatory Change
Tait highlighted the World Gold Council’s efforts in reducing barriers that historically limited gold’s role in mainstream investment portfolios. He said the council has worked to make gold more divisible, easier to hold, and more transparent, which facilitates broader institutional acceptance.
Regulatory changes have the potential to accelerate gold’s adoption as a financial asset class, particularly in markets such as India, China and Japan where institutional participation has been relatively early in development.
Implications for Gold-Backed Financial Products
The shift in India gold demand toward financial infrastructure is also reflected in the increasing popularity of gold-backed ETFs and similar instruments. These products allow investors to gain exposure to gold without needing to hold physical metal, thereby lowering barriers to entry for institutional and younger retail investors alike.
This trend complements traditional sources of gold demand — such as jewellery and bars — and signals evolving investor preferences in a high-growth market.
Broader Context of Gold Demand Trends
Globally, gold demand dynamics have been shaped by a confluence of macroeconomic drivers. Price momentum, geopolitical tensions, and concerns over debt dynamics have bolstered gold’s appeal as a store of value and risk hedge.
India’s role as one of the world’s largest consumers of gold — driven historically by cultural, ceremonial and savings motives — now appears poised for transformation toward greater financial market participation, analysts said.
Market Reaction to Precious Metal Trends
Precious metals markets in India and abroad have shown resilience amid heightened global uncertainty. Physical gold prices have reached multiple record highs in early 2026, tracking global benchmarks.
The broader investment community continues to monitor trends in gold ETF inflows, central bank purchases and institutional demand patterns as key indicators of market health and investor confidence.
Background: Gold in Indian Culture and Finance
Gold has traditionally held a central place in Indian society as both a cultural symbol and financial asset. Households often allocate part of their savings to gold in physical forms such as jewellery, coins and bars.
However, the emergence of financial tools like digital gold platforms and gold-linked ETFs has broadened the avenues for investors seeking exposure to the metal without physical custody requirements.
Closing Summary
The India gold demand story is evolving, with institutional investors and market infrastructure playing an increasingly significant role, World Gold Council CEO David Tait said at the Rising Bharat Summit. He noted that structural drivers — rather than short-term price momentum — are supporting gold’s appeal in portfolios, while regulatory enhancements and new financial products are shaping broader participation in the precious metal’s market.