India Gold Investment Tops Jewellery Demand in Q1 2026

In the first quarter of 2026, investment demand for gold in India surpassed jewellery consumption for the first time on record, reaching 82 tonnes compared to 66 tonnes for jewellery, according to the World Gold Council's Gold Demand Trends report released on April 29.

Total gold demand in India rose 10 percent year-over-year to 151 tonnes from 137 tonnes, while its value nearly doubled to 2.27 lakh crore rupees, driven by domestic prices that climbed 81 percent to an average of 1.51 lakh rupees per 10 grams. Investment demand jumped 54 percent, led by bars and coins at 62 tonnes, up 34 percent, and gold exchange-traded funds with record inflows equivalent to nearly 20 tonnes. Investors turned to gold amid stock market declines and equity volatility, viewing it as a safe-haven asset.

Jewellery demand fell 19 percent in volume as high prices reduced affordability, particularly among price-sensitive consumers, though its value rose 47 percent to about 99,900 crore rupees. Consumers shifted toward lighter-weight, lower-carat items and studded designs, with increased use of old gold exchanges and loans.

On the supply side, gold imports increased 39 percent to 186-196 tonnes, and...