India's Gold Demand Falls 6% in Q2 Amid Record-High Prices

India's gold demand declined by 6% in the second quarter of 2026 compared to the same period last year, according to a report released by the World Gold Council. The drop was largely due to weak jewellery sales, which account for the largest share of India's gold consumption.

The total value of gold purchased, however, surged by 50% to a record Rs 1.98 lakh crore. This reflects the sharp increase in domestic gold prices, which significantly inflated the value of transactions and offset the decline in physical demand.

Investor interest in gold remained strong despite weak jewellery sales, with continued economic uncertainty, volatile global financial markets, and geopolitical tensions encouraging investors to maintain allocations to gold as a safe-haven asset.