Gold Prices Soar, But Indians Still Spend Record Amounts

India's gold demand fell by 6% year-over-year to 131 tonnes in Q2 2026, but the total value of spending on gold surged 50% to a record ₹1.98 lakh crore as prices remained high.

The World Gold Council attributed the decline in volumes to elevated gold prices, higher import duty, a weaker rupee, and a seasonally weak period for purchases.

Despite the decrease in demand, consumers shifted towards lighter jewellery, exchange schemes, and gold-backed loans instead of cutting purchases completely.