Indian Gold Jewellery Demand Falls as High Prices Take Hold
India's gold jewellery demand saw a significant decline in the second quarter of 2026, dropping by 15% to 75 tonnes. This decrease is attributed to record high prices, which are influencing consumer behavior and leading to a shift towards lighter-weight jewellery.
Despite the volume decline, the value of Indian gold demand reached $21 billion for the first half of 2026, representing a 26% increase compared to the same period last year. This discrepancy between lower volumes and higher values highlights the sustained high price points driving cash flows into the gold market.
On a global scale, central banks continued to buy gold in significant quantities, adding 289 tonnes to their reserves in the second quarter, a 62% jump compared to the previous year. The Reserve Bank of India contributed modestly with an addition of 200 kg.