India's Gold Demand Slips Amid Soaring Prices

India's gold demand fell by 6% in the second quarter of 2026 compared to the same period last year, according to a report from the World Gold Council (WGC). Despite this decline in volumes, the value of total gold demand reached a record high of Rs 1.98 lakh crore ($21 billion), up 50% from Rs 1.32 lakh crore in 2025.

The price-driven adjustment is reflected in consumers opting for lighter-weight, lower-carat, and studded jewellery to adapt to the nearly 60% YoY rise in gold prices. The average domestic gold price rose from around Rs 95,011 to Rs 1,50,886 per 10 grams during April-June 2026.

Jewellery demand fell by 15.4% YoY to 75.1 tonnes, but the value of jewellery purchases increased by 34.4% to Rs 1.13 lakh crore ($12 billion) due to higher gold prices. Retailers reported a 10-20% increase in exchange volumes, with exchange transactions accounting for up to 70% of sales in some stores.