India's Gold Demand Falls 29% to 162.5 Tonnes in Q3 2026; WGC Forecasts Full-Year Demand at 625 - 675 Tonnes

Higher import duty, record-high gold prices and the Prime Minister`s appeal to curb purchases impact gold demand, even as overall demand value increases by 3%.

India`s gold demand declined by 29 per cent year-on-year to 162.5 tonnes during the July–September quarter of 2026, as higher import duty, soaring gold prices and the Prime Minister`s appeal to reduce gold purchases affected consumer buying. According to the World Gold Council`s (WGC) Q3 2026 Gold Demand Trends report, demand stood at 229.8 tonnes during the corresponding quarter of 2025.

Despite the decline in volume, the overall value of gold demand increased by 3 per cent to Rs 2,41,900 crore, compared with Rs 2,35,090 crore in the same period last year. The WGC expects India`s full-year gold demand in 2026 to range between 625 and 675 tonnes.

Rising Gold Prices Influence Consumer Purchases

The average gold price during the July–September quarter reached USD 4,262 per troy ounce, equivalent to Rs 1,48,891 per 10 grams. This was significantly higher than USD 3,457 per troy ounce (Rs 1,02,287 per 10 grams) recorded during the same quarter of 2025. These prices exclude import duty and GST.

The sharp increase in gold prices encouraged consumers to reconsider their purchases, particularly in the jewellery segment.

Gold Jewellery Demand Drops 20%

India`s total gold jewellery demand declined by 20 per cent to 99.9 tonnes in Q3 2026, compared with 125 tonnes in the corresponding quarter last year. However, the value of jewellery demand increased by 16 per cent to Rs 1,48,700 crore.

WGC Regional CEO, India, Sachin Jain, said Indian consumers continued to prioritise gold despite elevated prices. He noted that wedding and festive purchases, particularly in South India, supported jewellery demand during the quarter. A late-quarter pullback in gold prices also encouraged some consumers to complete purchases they had previously postponed.

Consumers are increasingly choosing lighter-weight jewellery and exchange programmes to manage higher prices while maintaining their preference for gold ornaments.

Gold Bars, Coins and ETFs See Lower Demand

Investment-related gold purchases also experienced a significant decline during the quarter.

Gold bars and coins: Demand fell 40 per cent to 55 tonnes from 91.6 tonnes.

Gold ETFs: Demand declined 50 per cent to 5.3 tonnes from 10.7 tonnes.

The Reserve Bank of India did not purchase any gold during the third quarter of 2026, compared with purchases of 0.2 tonnes in the same quarter of 2025.

Gold Imports and Recycling Decline

India`s net gold imports dropped 46 per cent to 114.1 tonnes during July–September 2026, compared with 211.9 tonnes in the corresponding period last year.

Gold recycling also declined by 12 per cent to 19.2 tonnes from 21.8 tonnes. According to Sachin Jain, official bullion imports declined sharply, while recycling remained subdued. Preliminary estimates also indicated an increase in unofficial gold inflows.

Festive and Wedding Season May Support Gold Demand

Looking ahead, the upcoming festive and wedding season is expected to provide support to India`s gold market. Jewellers have started preparations for the festive period, while improving seasonal buying sentiment offers encouraging signs.

The WGC expects consumers to continue adapting to higher gold prices through lighter-weight jewellery and exchange-led purchases.

Sachin Jain projected India`s total gold demand for 2026 at 625–675 tonnes, indicating that festive buying and wedding-related purchases could help support demand in the coming months.