Media365
India’s gold demand declined by 6 per cent year-on-year in the April-June quarter of 2026 as elevated prices weighed on purchases, but consumers still spent a record amount on the precious metal, underscoring its enduring appeal as both an investment and a store of wealth.
According to the World Gold Council’s (WGC) Gold Demand Trends: India Focus Q2 2026 report released on Thursday, total gold demand stood at 130.9 tonnes during the quarter, down from 139.1 tonnes a year earlier. However, the value of gold purchases surged 50 per cent year-on-year to a record Rs 1.98 lakh crore (US$21 billion) as domestic gold prices remained close to historic highs.
The report attributed the moderation in demand primarily to elevated gold prices, which were nearly 59 per cent higher than a year ago, supported by a mid-May import duty hike and a weaker rupee. While international gold prices eased during the quarter, domestic prices remained broadly stable because of these factors.
Jewellery demand improved sequentially from the previous quarter to 75.1 tonnes, helped by Akshaya Tritiya and the wedding season, but remained 15 per cent lower on an annual basis as consumers shifted towards lighter-weight and lower-carat jewellery. Despite lower volumes, jewellery spending rose 34 per cent year-on-year to over Rs 1.13 lakh crore, reflecting the sharp increase in prices.
The WGC said Indian consumers are increasingly adapting to higher prices by opting for exchange schemes, EMI-based purchases and value-orientated buying rather than abandoning gold altogether. Retailers also reported a rise in gold exchange transactions, with exchanged jewellery accounting for a significant share of sales in several markets.
Looking ahead, the council expects gold demand to remain highly sensitive to price movements. Wedding and festive season purchases are likely to support demand in the second half of the year, although persistently high prices and the possibility of a weak monsoon could limit jewellery buying. Investment demand is expected to remain positive but will largely depend on the direction of gold prices.
