India's Q2 2026 gold demand down 6% as value spending peaks

India's gold demand declined in the second quarter of 2026, even as consumers spent record amounts on the precious metal due to significantly higher prices. According to a report released on July 30 by the World Gold Council, total gold demand for the April-June quarter fell 6 percent year-on-year to 131.4 tonnes.

In value terms, however, demand surged 50 percent to 1.98 lakh crore rupees, a record high, compared to 1.32 lakh crore rupees in the same period last year. Sachin Jain, Regional CEO for India at the World Gold Council, said the figures indicate consumers are continuing to prioritize gold within their budgets despite elevated prices.

The decline was driven primarily by a sharp 15 percent drop in jewellery demand, which fell to 75.1 tonnes from 88.8 tonnes a year earlier. Officials cited multiple factors for the slowdown, including a seasonal inauspicious period in mid-May to mid-June, a government hike in import duty, and a public appeal from Prime Minister Narendra Modi in May for citizens to reduce non-essential gold purchases to help contain the country's import bill.

In contrast, investment demand showed resilience. Purchases of gold bars and coins rose 9 percent to...