India’s gold demand fell 29% year-on-year to 162.5 tonnes in July–September 2026, according to the World Gold Council. Buyers purchased far less gold than in the same quarter last year, mainly because record-high prices made gold less affordable.
Jewellery demand declines
Gold jewellery demand in India dropped 20% to 99.9 tonnes, compared with 125 tonnes in July–September 2025. This was India’s weakest third quarter for jewellery demand since 2020.
However, jewellery demand improved 33% from the April–June quarter, helped by festive buying and a late-quarter softening in gold prices. In value terms, jewellery purchases rose 16% to ₹1,48,700 crore, or about $15.6 billion.
Spending rises despite fewer purchases
Although Indians bought less gold by weight, they spent more money overall. Total gold demand value increased 3% year-on-year to ₹2,41,900 crore, up from ₹2,35,090 crore in Q3 2025.
The main reason is the sharp rise in gold prices. The average gold price during the quarter was ₹1,48,891 per 10 grams, compared with ₹1,02,287 per 10 grams a year earlier.
Investment demand weakens
Investment demand also declined sharply:
- Gold bar and coin demand fell 40% to 55 tonnes, from 91.6 tonnes a year earlier.
- Gold ETF demand dropped 50% to 5.3 tonnes.
- Net gold imports fell 46% to 114.1 tonnes.
- Gold recycling declined 12% to 19.2 tonnes.
These figures show that high prices affected both traditional buyers and investors.
Why demand fell
The World Gold Council attributed the fall to elevated domestic gold prices, affordability concerns, and a higher import duty. The report also noted that some festivals that boosted demand in Q3 2025 occurred later in 2026, reducing the year-on-year comparison.
Despite the annual decline, total demand rose 25% quarter-on-quarter, indicating that buyers returned when prices eased toward the end of the quarter.
Outlook for the year
The World Gold Council expects India’s full-year gold demand in 2026 to be between 625 and 675 tonnes, which could be a six-year low.
Demand may recover in the October–December quarter due to Diwali, Dhanteras, and the wedding season. Still, high prices and pressure on rural incomes could limit the pace of recovery.
