PTI New Delhi

As gold prices soar to new heights, a study on Wednesday made a case for a comprehensive policy for the yellow metal as India is one of the world's largest bullion markets, influenced by a cultural affinity for the shiny metal and investment demand. Gold price has been reaching new heights driven by geo-political tensions, economic uncertainty, and a weakening US dollar, said the report titled 'Coming Of (A Turbulent) Age: The Great Global Gold Rush' by the SBI's Economic Research Department.

The year-to-date price has increased by over 50% in 2025. The price came down to below USD 4,000 per ounce for a few days in October, but again moved above USD 4,000/oz in November. The report noted that the domestic supply of gold is only a fraction of the total gold supply in India, with imports contributing around 86% of the total supply in 2024 as per the World Gold Council estimate. India is one of the largest gold markets, influenced by cultural affinity for shiny metal, investment demand and other economic factors, it noted.

Total consumer demand for gold in India increased to 802.8 tonnes in 2024, which was 26% of the global gold demand, placing India at second rank, next to China with a consumer demand of 815.4 tonnes.

"Cherished by households, cheered by investors, hoarded by central banks and feted by speculators, the recent chequered journey of the shiny metal has been straight out of a story book, but also cautions as a fear gauge of the tempest waiting on the sidelines. Time for India to have a dedicated long-term gold policy that supports localisation," the report said.