Gold Price Surge Lifts Indian Household Wealth By ₹117 Lakh Crore In 2025

Indian household wealth rose sharply in calendar year 2025, largely due to higher gold prices, according to the HDFC Mutual Fund Yearbook 2026.  

The report estimates that household wealth increased by around ₹117 lakh crore, or about $1.3 trillion, during the year. This marked one of the strongest annual increases in household wealth in recent decades. 

Record Gains from Gold Prices 

Gold prices rose by nearly ₹57,000 per 10 grams in 2025 until December 15. This followed an increase of around ₹14,000 per 10 grams in 2024.  

The report stated that the combined rise over 2 years resulted in the highest wealth addition from gold price appreciation in the last 25 years. The increase also coincided with higher borrowing against gold by retail customers. 

Equity Markets Lag Global Peers 

While gold prices moved higher, Indian equity markets saw limited gains in 2025. The year was described as a phase of consolidation for equities.  

India underperformed global markets, leading to a fall in its share of global market capitalisation. The Nifty 50 underperformed global indices and emerging markets by roughly 25%, its weakest relative showing in nearly three decades. 

Asset Performance Across Markets 

Globally, gold, emerging markets, European equities and the group of US technology stocks known as the “Magnificent 7” recorded relatively stronger performance in 2025.  

In contrast, oil, the US dollar were among the weaker-performing assets during the year. The divergence reflected differing investor preferences across asset classes. 

Read More: Top 3 Geopolitical Developments Across Regions and Their Role in Supporting Gold and Silver Prices! 

Conclusion 

The sharp rise in gold prices in 2025 was the main factor behind the increase in Indian household wealth, offsetting weaker equity market performance during the year. 

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