India's Gold Demand Falls Six Percent Amid Higher Prices and Customs Duty

India's gold demand fell by six percent year-over-year in Q2 2026 due to higher prices and customs duty, according to a report by the World Gold Council (WGC). The country consumed 131.4 tonnes of gold during the April-June quarter, down from 139.7 tonnes in the same period last year.

Despite lower volumes, the value of gold demand hit a record high as consumers continued to invest in the precious metal. The WGC reported that investment demand remained strong, with bar and coin demand growing nine percent year-over-year to 50.3 tonnes.

The WGC's Regional CEO for India, Sachin Jain, noted that while elevated prices may influence buying patterns, Indian consumers have consistently demonstrated their ability to adapt. He also expressed concern about a rise in grey marketing after the duty hike, citing reports of illicit gold making its way into the market.