Indian Gold Jewellery Demand Drops Amid High Prices

The World Gold Council reported that India's gold jewellery demand fell by 15% year-on-year to 75 tonnes during the April-June quarter of 2026. The main reason behind this decline was persistently high gold prices, which forced consumers to postpone or choose lighter ornaments instead of heavier ones.

Despite a sequential recovery in demand during the second quarter compared to the first three months of 2026, purchases remained lower than the corresponding period last year. India's total gold jewellery demand during the first six months of 2026 stood at 141 tonnes, down 17% from the same period a year earlier.

The value of these purchases increased by more than 26% to USD 21 billion due to higher gold prices. Central banks continued to add gold to their reserves, purchasing 289 tonnes during the quarter, a 62% increase over the corresponding period last year. The Reserve Bank of India bought 200 kilograms of gold during the April-June period.