India's Gold Demand Drops 6% Amid Record Spending
India's gold demand declined by 6% in the second quarter of this year, but consumers continued to spend heavily on the precious metal. According to the World Gold Council's (WGC) Gold Demand Trends Q2 2026 report, total gold demand reached a record high of Rs 1.98 lakh crore ($21 billion), up 50% from last year.
The fall in volumes was due to higher prices, which rose nearly 60% YoY, causing buyers to opt for lighter-weight, lower-carat, and studded jewelry. Exchange programs also gained popularity during this period. Demand was supported by Akshaya Tritiya and wedding purchases early in the quarter, but eased from mid-May following a hike in import duties and a month-long inauspicious period for weddings.
Despite the decline, India retained its position as the world's largest jewelry market, accounting for 27% of global jewelry demand. Retailers reported a 10-20% increase in exchange volumes, with exchange transactions making up as much as 70% of sales in some stores.