India's Gold Demand Drops 6% Amid Record Consumption Value

India's gold market experienced a decline in demand during the April-June quarter, as reported by the World Gold Council (WGC) in its Q2 2026 Gold Demand Trends report. The country's gold demand dropped 6% year-on-year to 131.4 tonnes, while consumption value surged 50% to ₹1.98 lakh crore, a record high.

The WGC attributed the decline in volumes to elevated prices, weak seasonal demand, and higher Customs duty, which curbed purchases. Despite this, consumers continued to view gold as an important store of wealth, even at record prices, according to WGC Regional Chief Executive Officer for India, Sachin Jain.

Jain projected India's gold demand for 2026 at 650-750 tonnes, with a likely settlement around the middle range unless prices correct further and the government reduces Customs duty. Investment demand remained resilient during the quarter, with demand for gold bars and coins increasing 9% year-on-year to 50.3 tonnes.

The WGC expects demand to receive support from the festive and wedding season in the second half of the year, but persistently high prices may continue influencing consumer buying patterns.