Owing to high gold prices and excess volatility witnessed in the past months following the West Asia conflict, the overall demand for gold in India dropped 6% YoY to 131.4 tonnes in the April-June 2026 quarter from 139.7 tonnes in the year-ago period as per data released by World Gold Council (WGC).

India’s gold demand value for the quarter was ₹1,98,100 crore, up by 50% as compared to ₹132,500 crore in the year-ago period. Total Jewellery demand in India for the quarter decreased by 15% to 75.1 tonnes as compared to 88.8 tonnes a year ago.

However, the value of jewellery demand increased to ₹113,210 crore, compared to ₹84,200 crore a year ago, as per WGC. Total Bar and Coin demand increased 9% YoY to 50.3 tonnes and in value term it was 73% more at ₹75,750 crore.

As per WGC data total gold ETF demand for the quarter was at 4.2 tonnes, up 49% YoY.  In value terms, gold ETF demand was ₹6,300 crore, up by 136% YoY.

Total gold recycled in India during the quarter was down 17% YoY to 19.2 tonnes. Also, total gold imports reduced by 23% YoY to 98.1 tonnes.

US$/oz average quarterly price for the quarter was $4,506.3 in comparison to $3,280.4 in the year-ago period. INR/10g average quarterly price for the quarter was ₹1,50,744.8 in comparison to ₹94,875.9 a year ago (without import duty and GST).

Sachin Jain, Regional CEO, India, World Gold Council said the highlights that consumers continue to prioritise gold even in a high-price environment. 

“They are adapting their purchasing decisions to balance affordability with long-term value. This shift was particularly evident in the jewellery market. Although volumes declined to around 75 tonnes, jewellery demand in value terms grew 34% to ₹1,13,210 crores, supported by seasonal buying during festivals like Akshaya Tritiya, Gudi Padwa etc,” he said.

He said consumers are choosing lighter-weight and lower-carat jewellery, while increasingly leveraging exchange programmes to optimise their purchases.

Stating that investment demand remained encouraging, he said bar and coin demand grew 9% year-on-year to 50.3 tonnes, while Indian Gold ETFs attracted 4.2 tonnes of net inflows despite global outflows. 

“These trends reinforce gold’s growing appeal not only as a traditional store of wealth but also as a strategic investment that provides stability and diversification in an increasingly uncertain economic environment,” Mr. Jain emphasised. 

As per WGC’s forecast festive and wedding season in second half of this year is expected to support demand. 

“While elevated prices may continue to influence buying patterns, Indian consumers have consistently demonstrated their ability to adapt,” Mr. Jain said. 

“We expect gold to remain firmly embedded in household savings and investment decisions, underpinned by its enduring role as a trusted store of value and a source of financial resilience. We estimate full year demand to be in the range of 650-750 tonnes,” he added.

Globally total gold demand in the April-June 2026 quarter remained flat year-on-year (YoY) at 1,269 tonnes as the gold price eased from the record highs seen at the start of 2026. 

This pushed demand for H1 2% higher YoY to an estimated 2,522 tonnes worth $380 billion.

Investment in gold ETFs, bars and coins dropped to 262 tonnes in the quarter as the lower gold price tempered the strong momentum seen earlier in the year, WGC said. 

The decline was primarily driven by 45 tonnes of outflows from gold-backed ETFs in the quarter although first-half ETF demand remained modestly positive at 18 tonnes.

Bar and coin investment was relatively stable, down 3% YoY, while first-half demand was still 21% higher than at this point last year, supported by an ‘exceptional’ first quarter. 

The WGC’s Central Bank Gold Reserves Survey showed that 45% of respondents intend to increase their own gold reserves over the next 12 months, highlighting gold’s enduring importance in official reserves. 

Globally high prices continued to weigh on jewellery demand in the quarter, which fell 17% YoY as consumers bought less gold and shifted towards lighter products, WGC said. 

Published – July 30, 2026 01:44 pm IST