India's Gold Demand Declines 6% in Q2 2026 Amid High Prices

During the April to June quarter of 2026, India's gold demand experienced a notable decline of 6% compared to the same period last year, as reported by the World Gold Council (WGC). The total demand for gold in India reached 131.4 tonnes, down from 139.7 tonnes in the previous year. This decrease in demand can be attributed to several factors, including seasonal fluctuations in jewellery purchases, an increase in Customs duty, and a public appeal from Prime Minister Narendra Modi urging citizens to limit non-essential gold purchases. Despite the drop in quantity, the overall value of gold demand surged to unprecedented levels due to high market prices, with consumers spending Rs 1,98,100 crores, a significant increase from Rs 1,32,500 crores in the same quarter of 2025. WGC's Regional CEO for India, Sachin Jain, emphasized that even in a challenging price environment, gold remains a priority for consumers.

Looking forward, the WGC anticipates that India's annual gold demand will stabilize within the range of 650 to 750 tonnes. Jain noted that while the current geopolitical situation, interest rates, and inflation could influence this forecast, a reduction in gold prices and Customs duties might push demand towards the higher end of this spectrum. The report highlighted a more pronounced decline in jewellery demand, which fell by 15% year-on-year to 75.1 tonnes. Jain pointed out that several factors contributed to this downturn, including a subdued seasonal market, the Prime Minister's call to reduce gold purchases, and the rise in Customs duties. Modi's appeal, made in May, aimed to mitigate the country's growing import bill amidst fluctuating global crude oil prices, encouraging citizens to explore alternative savings options.