Record prices
The World Gold Council attributed the shift to elevated gold prices, inflationary pressures and policy changes during the quarter.
India’s jewellery demand fell 15% year-on-year to 75.1 tonnes, the weakest April-June quarter since the pandemic. However, the value of jewellery purchases jumped 34% to Rs 1,13,210 crore, reflecting the sharp rise in gold prices.
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The quarter itself unfolded in two distinct phases. Demand received a boost in April from Akshaya Tritiya, Gudi Padwa and wedding purchases, while the correction in gold prices from earlier highs encouraged buying. Sentiment weakened from mid-May through mid-June following the increase in gold import duty from 6% to 15%, Adhik Maas, and government measures aimed at moderating gold imports.
“The April-June quarter 2026 reflected the evolving nature of gold demand in India. While total demand moderated by 6% to 131.4 tonnes compared with Q2 2025, the total value of demand rose by an impressive 50% to a record Rs 1,98,100 crore, highlighting that consumers continue to prioritise gold even in a high-price environment,” said Sachin Jain, Regional CEO, India, World Gold Council.
Buying smarter, not necessarily more
Instead of abandoning gold, consumers adapted.
The report says buyers increasingly opted for lighter-weight jewellery, lower-carat products and old-for-new exchange programmes to keep purchases affordable. Larger organised retailers also reported stronger demand for studded jewellery and lighter designs, particularly among urban buyers, while traditional 22-carat jewellery witnessed relatively weaker demand.
“They are adapting their purchasing decisions to balance affordability with long-term value,” Jain said, adding that this shift was especially evident in the jewellery segment.
The trend mirrors a broader consumer response to record prices, where households are stretching budgets without giving up their affinity for gold.
Investment demand stays strong
While jewellery volumes weakened, investment demand remained resilient.
According to the report, bar and coin demand increased 9% year-on-year to 50.3 tonnes, suggesting many buyers shifted towards investment-grade gold rather than ornamental purchases. Indian Gold ETFs also attracted 4.2 tonnes of net inflows, even as global gold ETFs witnessed outflows during the quarter.
The World Gold Council said investors largely retained a positive outlook for gold despite the price rally. When domestic prices corrected below the psychologically significant Rs 1.5 lakh per 10 grams in June, many consumers viewed it as an opportunity to accumulate more gold, boosting demand for bars, coins and digital gold products.
What lies ahead?
The second half of the year will largely depend on two factors—gold prices and the festive season.
Jewellers reported stronger buying activity in July as consumers took advantage of lower prices ahead of the upcoming wedding season. The World Gold Council expects festive demand to lend support in the coming months, although the monsoon and rural incomes will remain critical variables. Even if consumers continue to buy fewer grams, the April-June quarter suggests one thing is unlikely to change anytime soon: Indians remain willing to spend more to keep gold in their portfolios.
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