India's Gold Demand Drops 6% Amid Higher Duty, Weak Seasonal Sales

India's gold demand plummeted by 6% in the April-June quarter due to weak seasonal sales, higher Customs duty, and Prime Minister Narendra Modi's appeal to reduce non-essential purchases. According to a World Gold Council (WGC) report, India consumed 131.4 tonnes of gold during this period, down from 139.7 tonnes in the same quarter last year.

Despite the decline, the value of demand rose by 50% to Rs 1,98,100 crores compared to Rs 1,32,500 crores in the corresponding period in 2025. The WGC's Regional CEO for India, Sachin Jain, noted that consumers continue to prioritize gold even in a high-price environment.

The total demand is estimated to stay between 650 and 750 tonnes for the year. However, given the current geopolitical landscape, interest rates, and inflation, Jain believes demand may be around the middle of this range.

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