India's Q2 Gold Demand Falls 6% Amid Seasonal Slump

India's gold demand dropped by 6% year-on-year to 131.4 tonnes in Q2 of 2026, according to a recent report by the World Gold Council.

The decline was largely due to subdued seasonal demand, higher customs duty, and a shift in consumer sentiment.

Jewellery consumption saw the sharpest decline, falling by 15% year-on-year to 75.1 tonnes from 88.8 tonnes in the same period last year.

Prime Minister Narendra Modi had earlier urged citizens to curb non-essential gold purchases and consider alternative savings avenues to help reduce pressure on the country's foreign exchange reserves.