Indian Gold Demand Falls 6% as High Prices Reshape Buying Patterns
Gold demand in India decreased by 6% in Q2 2026 compared to the same period last year, according to the World Gold Council's (WGC) latest report. The decline was led by a 15% fall in jewellery demand, while investment demand remained steady. However, demand for gold bars and coins rose 9%, and exchange-traded funds (ETFs) saw a significant increase of 49%. Elevated prices have reshaped buying patterns across India, with consumers opting for lighter-weight, lower-carat, and studded jewellery.
The average quarterly gold price in Q2 2026 reached $4,506.3 an ounce, up from $3,280.4 in the same quarter last year. In rupee terms, the average price was ₹1,50,744.8 per 10 grams, a 59% increase over the previous year's prices.
Despite high prices constraining affordability, gold consumption rose by 50% to ₹1,98,100 crore in Q2 2026 from ₹1,32,500 crore in the same period last year. WGC Regional CEO Sachin Jain expects demand to remain firm, with a record value of consumption.
Jain also highlighted the risks associated with illicit gold entering the market through smuggling and grey channels. Gold recycling in India declined 17% to 19.2 tonnes in Q2 2026, while imports fell by 23% to 98.1 tonnes.