India's Gold Demand Drops 6% in Q2 2026 Amid Higher Customs Duty

India's gold demand fell by 6% year-on-year to 131.4 tonnes during the second quarter of 2026, according to the World Gold Council's latest Q2 Gold Demand Trends report.

The decline was driven by subdued seasonal demand, higher customs duty, and a shift in consumer sentiment, which weighed on purchases.

Jewellery consumption witnessed the sharpest decline, falling by 15% year-on-year to 75.1 tonnes from 88.8 tonnes in the corresponding period last year.

The drop also came after Prime Minister Narendra Modi urged citizens to curb non-essential gold purchases and consider alternative savings avenues to help reduce pressure on the country's foreign exchange reserves amid rising import costs driven by volatile crude oil prices.