Gold Demand in India Falls Amid High Prices and Duty Hike

India's gold demand dropped by 6% in Q2 2026 due to high prices, increased customs duty, and weak seasonality. According to the World Gold Council (WGC), demand fell to 131.4 tonnes in the quarter two of 2026 from 139.7 tonnes in the same period last year.

The value of gold consumption, however, reached an all-time high at Rs 1.98 lakh crore in Q2 2026, up from Rs 1.32 lakh crore in Q2 2025. Sachin Jain, Regional CEO, India, World Gold Council, said that the rise in value indicated continued love for gold among Indian consumers despite the difficult price scenario.

Gold jewellery demand experienced a steeper decline of 15% to 75.1 tonnes from 88.8 tonnes seen in the corresponding quarter in 2025. This was attributed to seasonality, increased customs duty, and Prime Minister Narendra Modi's appeal to curb non-essential gold purchases.