India's gold demand moderated during the April-June quarter of 2026 as elevated prices affected consumer purchasing patterns. Despite lower volumes, the overall value of gold purchases reached a record level due to historically high prices.
The World Gold Council (WGC) reported a divergence between jewellery and investment demand, with investors continuing to allocate funds to gold products. The council expects festive buying and wedding-season purchases to support demand during the second half of 2026.
According to the WGC, India's total gold demand declined 6% year-on-year to 131.4 tonnes during the April-June quarter. However, the value of gold demand rose 50% year-on-year to a record ₹1,98,100 crore as prices remained elevated.
The sharp increase in value highlights the impact of higher gold prices on consumer spending despite lower purchase volumes. The quarter reflected a market where buyers continued to participate while adjusting purchasing behaviour to manage affordability.
Jewellery demand in India fell 15% year-on-year to 75.1 tonnes during the quarter. In contrast, demand for gold bars and coins increased 9% to 50.3 tonnes, indicating continued investor interest in physical gold.
Consumers increasingly opted for lighter-weight jewellery, lower-carat products and exchange-led purchases to offset the effect of higher prices. The trend suggests that affordability concerns affected jewellery purchases more significantly than investment-related demand.
Investment activity remained a key pillar of gold demand during the quarter. Gold exchange-traded fund (ETF) demand rose 49% year-on-year to 4.2 tonnes, reflecting gold's appeal as a store of value amid market uncertainty.
The WGC noted that investors continued to favour gold-backed products even as prices remained near record levels. The increase in ETF inflows, alongside strong bar and coin demand, helped offset weakness in the jewellery segment.
Globally, total gold demand remained broadly stable at 1,269 tonnes during the second quarter, while first-half demand increased 2% year-on-year to 2,522 tonnes. The value of global first-half gold demand reached a record USD 380 billion, supported by strong prices.
Central banks added a net 289 tonnes to reserves during the quarter, representing a 62% increase from a year earlier, while global jewellery demand declined 17% due to affordability pressures. The WGC expects investment demand, supported by over-the-counter activity and Asian buying, to remain the primary driver of gold demand through the remainder of 2026.
Read More: Gold ETFs Inflows Rises Over 570% to ₹3,443.23 Crore in June 2026.
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India's gold market recorded lower demand volumes during the April-June quarter of 2026, but higher prices lifted the value of purchases to a record ₹1,98,100 crore. Jewellery demand weakened, while demand for bars, coins and ETFs remained resilient.
The WGC expects festive and wedding-season buying to support consumption in the coming months, although elevated prices and monsoon-related concerns could influence purchasing decisions. For the full year, the council estimates India's gold demand in the range of 650-750 tonnes.
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Published on: Jul 30, 2026, 4:09 PM IST
Akshay Shivalkar
Akshay Shivalkar is a financial content specialist who strategises and creates SEO-optimised content on the stock market, mutual funds, and other investment products. With experience in fintech and mutual funds, he simplifies complex financial concepts to help investors make informed decisions through his writing.
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