India's gold demand falls 6% in Q2, value jumps 50 pc to record Rs 1.98 lakh crore: WGC
Mumbai, July 30
India's gold demand moderated during the April-June quarter, but the value of purchases touched a record as consumers continued to buy despite historically high prices, with the World Gold Council expecting festive demand and investment buying to support the market in the second half of 2026.
According to the WGC's report, India's total gold demand declined 6 per cent year-on-year to 131.4 tonnes during the quarter. However, the value of demand rose 50 per cent to a record Rs 1,98,100 crore, reflecting elevated gold prices. Jewellery demand fell 15 per cent to 75.1 tonnes, while bar and coin demand increased 9 per cent to 50.3 tonnes. Gold ETF demand also rose 49 per cent year-on-year to 4.2 tonnes.
The report said consumers increasingly shifted towards lighter-weight jewellery, lower-carat products and exchange-led purchases to manage affordability, while investment demand remained supported by gold's appeal as a store of value. Looking ahead, the WGC expects the festive and wedding season to support demand, although elevated prices and a weak monsoon could remain headwinds. It estimates India's full-year gold demand at 650-750 tonnes.
However, globally total gold demand remained broadly unchanged at 1,269 tonnes in the second quarter, taking first-half demand 2 per cent higher year-on-year to 2,522 tonnes, valued at a record USD 380 billion.
Investment in gold ETFs, bars and coins moderated during the quarter as gold prices eased from record highs, while central banks added a net 289 tonnes to their reserves, up 62 per cent from a year earlier. Jewellery demand, however, fell 17 per cent year-on-year as high prices weighed on affordability, although spending on jewellery remained resilient in value terms.
Commenting on the outlook, Louise Street, Senior Markets Analyst at the World Gold Council, said, "For the second half of 2026, investment is likely to drive growth... Central banks will remain significant buyers, albeit at a slightly slower pace than we've seen over the last four years. High prices will keep pressure on jewellery volumes."
The World Gold Council said investment is expected to remain the principal driver of gold demand through the rest of the year, supported by over-the-counter activity and Asian buying, while mine production and recycling are likely to see only modest growth.
— ANI
Reader Comments
Good to see ETF demand rising 49%. This shows Indians are becoming more modern in their gold investment approach. But I'm concerned about the weak monsoon impact - if rural incomes suffer, traditional jewellery demand might take a bigger hit. The government should promote better hedging options for farmers.
As someone who recently got married, I can confirm this trend. We opted for 18k gold jewellery instead of 22k to stay within budget. The value jump is crazy - my mother keeps saying 'gold was ₹3,000 per gram in her time' 😂 Still, nothing beats the feeling of wearing real gold on your wedding day.
Interesting contrast - India's gold demand falling while value hits records. It's like we're paying more for less. The investment demand staying strong makes sense given global uncertainties. Central banks buying 289 tonnes more gold shows they're also hedging against currency risks. Smart money moves.
Honestly, the 15% drop in jewellery demand is a clear sign of economic stress. People are cutting back on traditions because incomes aren't keeping pace with inflation. Gold ETFs and coins show we still want to invest, but we're being smarter about it. WGC's 650-750 tonne estimate seems optimistic unless prices stabilize.
My grandmother always said 'gold is the only thing that never lies to you.' With stock market volatility and real estate being so illiquid, she was right. The 49% ETF jump proves even younger Indians get it. But I worry about recycling - are people selling family heirlooms? That's a sad trend if it becomes
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