Key Points

In terms of jewellery demand, India and China serve as catalysts -- together, they account for over 50 per cent of demand, as per the report.

Recovery in consumer spending and stimulus may revive urban jewellery purchases in China, too.

But there is a caveat to that that has been said in the report. With gold above USD 3,500-3,600 per ounce, price elasticity may cap demand recovery for the yellow metal, Mirae Asset Mutual Fund has asserted.

"We expect gold would likely to move upside going ahead from the current level and remain cautiously optimistic with caveats triggering in corrections," the report read.

Gold, internationally, continued its stellar run in August 2025, closing the month at USD 3,429 per ounce, marking a 3.9 per cent monthly gain, and taking its year-to-date rise to above 31 per cent, according to the World Gold Council's latest commentary.

The yellow metal is now hovering at a record high of just above USD 3,700 per ounce, market data showed. The gold rally was observed in August due to a weak US dollar, strong inflows into gold-backed ETFs, and persistent geopolitical tensions, WGC had noted.

Prices on the Multi-Commodity Exchange of India (MCX) are currently around Rs 109,000 per 10 grams, and an impressive jump since the start of the year 2025. India's market performance outpaced that of many peers, reflecting robust investment demand and a steady domestic appetite at high price levels.

For silver, which has broken above the USD 30 per ounce mark in 2024 and has since held momentum, the report said, "Trend structure remains constructive; pullbacks into support zones offer tactical entry opportunities."

Industrial use represents nearly 60 per cent of total silver demand.

Silver is essential in semiconductor fabrication, 5G, IoT, and AI data centres, with some estimates suggesting potentially higher usage in AI servers.

"Emerging applications in battery technologies (silver-zinc, silver-ion) and energy storage reinforce long-term demand," the report read.

- ANI