India's Gold Demand Plummets 6% Amid Record Prices and Duties

India's gold demand fell by 6% in Q2 of 2026 due to high prices, seasonal weakness, and higher import duty. According to the World Gold Council (WGC), gold demand dropped from 139.7 tonnes in the same quarter last year to 131.4 tonnes.

Despite the decline in demand, the value of gold consumption reached an all-time high, with a total value of Rs 1.98 lakh crore in Q2. This indicates that Indian consumers continue to have a strong affinity for gold, even amidst challenging market conditions.

Jewellery demand, which accounts for the largest portion of India's gold consumption, saw a steeper decline of 15% to 75.1 tonnes from 88.8 tonnes in Q2 last year. This can be attributed to seasonal weakness and increased customs duty, as well as Prime Minister Narendra Modi's appeal to reduce non-essential gold purchases.