India gold demand drops 6% in Q2 as jewellery buying falls 15%: WGC
India’s gold demand declined to 131.4 tonnes in April–June 2026, while value rose 50% to Rs 1.98 lakh crore on higher prices. Jewellery demand fell 15%, but bar-and-coin demand grew 9%; the World Gold Council expects festive and wedding purchases to aid the second half.
What happened
World Gold Council · India’s gold demand fell 6% in April-June 2026 as higher customs duty, weak seasonal buying and Modi’s appeal curbed purchases. Jewellery
Key facts
- India gold demand: 131.4 tonnes in April-June 2026, down 6% year-on-year from 139.7 tonnes
- Gold-demand value: Rs 1,98,100 crore, up 50% from Rs 1,32,500 crore
- Jewellery demand: 75.1 tonnes, down 15% from 88.8 tonnes
- Bar and coin demand: 50.3 tonnes, up 9%
- Gold ETF net inflows: 4.2 tonnes
- Recycled gold: 19.2 tonnes, down 17% from 23.1 tonnes
- Gold imports: 98.1 tonnes, down 23% from 127.4 tonnes
- Full-year demand forecast: 650-750 tonnes
- Average India gold price: Rs 1,50,744.8 per ounce excluding import duty and GST, versus Rs 94,875.9
Why this matters
The demand split—jewellery down 15% while bars and coins rose 9%—favours partnerships or acquisitions that add investment-gold, digital-gold and value-oriented jewellery capabilities.
What to watch
- Domestic gold-price direction and volatility relative to the Q2 peak.
- Diwali, Dhanteras and wedding-date booking trends versus prior year.
- Average jewellery weight per transaction, ticket size and share of old-gold exchange.
- Bar-and-coin sales growth versus ornament sales at major chains.
- Gold-loan rates, consumer financing uptake and household discretionary-spending indicators.
- Import-duty, tax or hallmarking-policy changes that alter price gaps or compliance costs.
- Expand lightweight, modular and lower-ticket collections while preserving bridal assortment depth.
- Increase old-gold exchange, upgrade and gold-savings-plan campaigns to reduce the upfront affordability barrier.
- Use hedging and faster inventory turns to limit exposure to price volatility and protect gross margins.
- Target festive and wedding demand with booked-price offers, instalment plans and digital appointment-led selling.
- Separate investment-gold merchandising from jewellery propositions, using bars and coins to retain price-sensitive customers who defer ornaments.