India's Gold Market Recovery Picks Up Momentum Amid Price Stabilisation
India's gold market has been experiencing a volatile demand cycle, shaped by its cultural and festive calendar. The country is the second-largest gold-consuming nation in the world, with a dual demand engine driven by jewellery consumption and financial investment. When prices rise sharply, Indian consumers can freeze their demand abruptly.
The recent price shock that pushed domestic rupee-denominated prices to levels compressing consumer affordability led to severe demand weakness in June 2026. However, by July and August, several indicators pointed towards a recovery. Import volumes rebounded, doubling from 20 tonnes to an estimated 40-45 tonnes in July.
The domestic price stabilised with international gold prices gaining approximately 9% through the first two weeks of August 2026, while domestic rupee-denominated prices rose by around 7%. The narrowing dealer discount signals that demand is increasingly absorbing available supply.