India's Gold Demand Falls 6% in Q2 Amid Subdued Seasonal Sales
India's gold demand declined by 6% in Q2 2026 compared to the same period last year, according to the World Gold Council. The country's total gold demand was 131.4 tonnes during the April-June quarter, down from 139.7 tonnes a year ago.
Jewellery consumption was hit the hardest, falling by 15% year-on-year to 75.1 tonnes from 88.8 tonnes in the corresponding period last year.
The decline in gold demand can be attributed to several factors, including subdued seasonal demand and higher customs duty. Additionally, Prime Minister Narendra Modi urged citizens to curb non-essential gold purchases and consider alternative savings avenues in May this year to help reduce pressure on the country's foreign exchange reserves amid rising import costs driven by volatile crude oil prices.
The World Gold Council notes that gold prices have dropped up to 1% on the MCX due to profit booking ahead of the US Fed policy decision. Despite this, analysts believe that the underlying safe-haven appeal of precious metal will likely get reignited in the coming months.