India's Gold Spending Hits Record High Despite Higher Prices

Despite record-high gold prices, Indian consumers spent a whopping ₹1.98 lakh crore on gold in Q2 2026, marking an all-time high.

The total gold demand during this period fell 6% year-on-year to 131 tonnes, but the value of that demand increased by 50% due to elevated domestic prices.

Consumers adapted to higher prices by opting for lighter-weight ornaments and lower-carat jewellery, with some retailers reporting that exchanged jewellery contributed up to 70% of their sales.