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

India's gold demand fell by six percent in the April-June quarter compared to the same period last year, driven by seasonally subdued sales and higher Customs duty. The World Gold Council reported that India imported 131.4 tonnes of gold during this period, down from 139.7 tonnes in Q2 2025.

The total value of gold demand in India rose 50 percent to Rs 1,98,100 crores, despite the decrease in volume. This increase was largely due to a rise in gold prices, which averaged USD 4,506.3 an ounce during the quarter.

Total jewellery demand fell by 15 percent year-over-year to 75.1 tonnes, while investment demand remained stable at 50.3 tonnes. The World Gold Council's Regional CEO for India, Sachin Jain, expressed concern about a potential rise in grey marketing due to higher Customs duty and the impact on legitimate gold imports.