India's Gold Demand Tumbles Amid High Prices

India's gold demand declined by 6% in Q2, but the value of purchases reached a record high due to elevated prices. According to the World Gold Council (WGC), India's total gold demand dropped to 131.4 tonnes during the April-June quarter. However, the value of demand rose by 50% to Rs 1,98,100 crore, making it the highest on record.

The WGC report shows that jewellery demand fell by 15% to 75.1 tonnes, while bar and coin demand increased by 9% to 50.3 tonnes. Gold ETF demand also rose by 49% year-on-year to 4.2 tonnes.

Consumers have been shifting towards lighter-weight jewellery, lower-carat products, and exchange-led purchases to manage affordability, while investment demand remains strong due to gold's appeal as a store of value. The WGC expects the festive and wedding season to support demand in the second half of 2026.