India's gold demand moderated during the April-June quarter, but the value of purchases touched a record as consumers continued to buy despite historically high prices, with the World Gold Council (WGC) expecting festive demand and investment buying to support the market in the second half of 2026. According to the WGC's report, India's total gold demand declined 6 per cent year-on-year to 131.4 tonnes during the quarter. However, the value of demand rose 50 per cent to a record Rs 1,98,100 crore, reflecting elevated gold prices. Jewellery demand fell 15 per cent to 75.1 tonnes, while bar and coin demand increased 9 per cent to 50.3 tonnes.
Gold ETF demand also rose 49 per cent year-on-year to 4.2 tonnes. The report said consumers increasingly shifted towards lighter-weight jewellery, lower-carat products and exchange-led purchases to manage affordability, while investment demand remained supported by gold's appeal as a store of value. Looking ahead, the WGC expects the festive and wedding season to support demand, although elevated prices and a weak monsoon could remain headwinds. It estimates India's full-year gold demand at 650-750 tonnes. However, globally total gold demand remained broadly unchanged at 1,269 tonnes in the second quarter, taking first-half demand 2 per cent higher year-on-year to 2,522 tonnes, valued at a record USD 380 billion.
Investment in gold ETFs, bars and coins moderated during the quarter as gold prices eased from record highs, while central banks added a net 289 tonnes to their reserves, up 62 per cent from a year earlier. Jewellery demand, however, fell 17 per cent year-on-year as high prices weighed on affordability, although spending on jewellery remained resilient in value terms. Commenting on the outlook, Louise Street, Senior Markets Analyst at the World Gold Council, said, "For the second half of 2026, investment is likely to drive growth... Central banks will remain significant buyers, albeit at a slightly slower pace than we've seen over the last four years. High prices will keep pressure on jewellery volumes." The World Gold Council said investment is expected to remain the principal driver of gold demand through the rest of the year, supported by over-the-counter activity and Asian buying, while mine production and recycling are likely to see only modest growth.