India Sees Record Gold Demand Despite Price Volatility

India's gold demand fell by 6% year-on-year to 131.4 tonnes in the April-June quarter of 2026-27, as reported by the World Gold Council (WGC). The decline was attributed to seasonally subdued sales, higher customs duty, and Prime Minister Narendra Modi's appeal to reduce purchases of gold.

The WGC estimated that total demand would remain between 650 and 750 tonnes in the next quarters of FY27. However, given the current geopolitical landscape, interest rates, and inflation, Sachin Jain, WGC Regional CEO, India, expressed concerns about a rise in grey marketing and smuggling after the duty hike.

Investment demand remained encouraging, with bar and coin demand growing 9% year-on-year to 50.3 tonnes. Indian Gold ETFs attracted 4.2 tonnes of net inflows despite global outflows.