India's gold demand falls 6% in April-June on weak seasonal demand, higher duty: WGC
India's gold demand dropped 6% in the second quarter of 2026 due to higher customs duties, seasonal factors, and government appeals to reduce non-essential purchases. Despite lower volume, the total value of consumption rose significantly due to higher gold prices.
Why it matters
The shift in gold consumption patterns reflects broader economic trends, including inflation, currency management, and government fiscal policy.
“India's gold demand fell 6% year-over-year to 131.4 tonnes in the April-June quarter, weighed down by seasonally subdued sales, higher Customs duty and Prime Minister Narendra Modi's appeal to reduce purchases of the precious metal,” the World Gold Council said in a report.
The total demand was at 139.7 tonnes during the corresponding period last year, according to WGC's 'Q2 2026 Gold Demand Trends' report. "However, it's been a record in terms of the value of demand. So, consumption was ₹1,98,100 crore, compared to ₹1,32,500 crore in the same period in 2025, which is up by 50% compared to the second quarter of 2025, highlighting that consumers continue to prioritise gold even in a high-price environment," WGC Regional CEO, India, Sachin Jain told PTI .
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