Commodities
India's Gold Demand Falls Amid High Prices and Government Appeals
India's gold demand fell by 6% year-on-year to 131.4 tonnes in the April-June quarter of 2026-27, according to a report from the World Gold Council (WGC).
The decline was due to seasonally subdued sales, higher customs duty, and Prime Minister Narendra Modi's appeal to reduce gold purchases.
Despite the decrease in demand, the value of consumption increased by 50% compared to the same period last year, reaching Rs 1,98,100 crores.
Sachin Jain, WGC Regional CEO, India, said that consumers continue to prioritize gold even in a high-price environment. He also expressed concern about a rise in grey marketing after the duty hike, noting reports of illicit gold making its way into these markets.