India's Gold Demand declined 29% year-on-year to 162.5 tonnes in the July-September quarter of 2026, as elevated prices, higher import duties and calls to curb gold purchases weighed on consumer demand, according to the World Gold Council (WGC). Demand stood at 229.8 tonnes in the corresponding quarter of 2025.
Key Highlights
- India's gold demand decreased by 29% to 162.5 tonnes, but the total value of the demand increased by 3% in Q3 2026. .
- Jewellery demand fell 20%, while bar and coin purchases dropped 40% amid elevated gold prices.
Though it came down in terms of volume, the value of gold demand rose by 3% to Rs 2,41,900 crore from a year ago's figure of Rs 2,35,090 crore, in view of the steep surge in gold rates. WGC has forecasted the demand for gold in India on a full-year basis at 625-675 tonnes.
The average gold price during the September quarter stood at $4,262 per troy ounce or Rs 1,48,891 per 10 grams. The average price in the last year was $3,457 per troy ounce or Rs 1,02,287 per 10 grams. These prices do not include import duty and GST.
Jewellery Demand Declines 20% as High Gold Prices Weigh on Buyers
During the September quarter, jewellery demand in the country drop by 20% to 99.9 tonnes from 125 last year, the Central Intelligence Bureau (CBI) reported. But, in value terms, the demand for jewellery increased by 16% to Rs 1,48,700 crore.
The decrease suggests that as gold remains an important cultural and traditional asset in the country, households' purchasing decisions are also being affected by its price.
Investment Demand Weakens as Bar and Coin Purchases Fall 40%
The investment demand also shrank significantly in the quarter. Gold-bars and gold coins sales fell by 40%-55% from 55 tonnes in the corresponding period last year.
Demand in gold exchange traded funds (ETFs) fell 50% to 5.3 tonnes compared to 10.7 tonnes in the same quarter of 2025.
According to WGC report, the Reserve Bank of India (RBI) did not buy any gold in the third quarter of 2026 as compared with 0.2 tonnes in the same quarter last year.
Also Read: Gold ETF vs Physical Gold: Cost, Tax, Returns and Liquidity Explained
India's Gold Imports Decline 46% in Q3 2026
India's net gold imports dropped by 46% in the July-September quarter to 114.1 tonnes from 211.9 tonnes in the same quarter last year. Gold recycling also contracted, falling 12% to 19.2 tonnes compared to 21.8 tonnes a year ago.
The slowdown in imports, along with reduced demand for jewellery and investments, is due to higher gold prices domestically.
Gold Retains Cultural Significance Despite Demand Slowdown
Despite the decline in gold demand, the yellow metal continues to hold an important place in Indian households. The celebration of festivals like Diwali, Akshaya Tritiya, Pongal, Onam, Ugadi, Durga Puja, Gudi Padwa, Baisakhi and Karva Chauth are closely associated to the purchase of gold. Weddings are also a key driver of consumption, driving about 50% of India's annual gold demand.
In rural families, besides its cultural significance, gold jewellery is also considered for its portability and perceived security as an investment.
