India’s gold demand declined 29% year-on-year to 163 tonnes in the July-September quarter of 2026, compared with 230 tonnes a year earlier, as elevated prices weighed on consumer purchases. However, demand in value terms rose 3% to ₹2,41,900 crore from ₹2,35,090 crore.
According to the World Gold Council’s (WGC) Gold Demand Trends: India Focus, Q3 2026, demand recovered 24% sequentially from 131 tonnes in Q2, supported by jewellery buying and seasonal purchases. Domestic gold prices averaged ₹1,48,891 per 10 grams, up 45% year-on-year.
Jewellery demand remains resilient
Jewellery demand fell 20% to 99.9 tonnes from 125 tonnes in Q3 2025, although its value increased 16 to ₹1,48,700 crore. Purchases rose 33% sequentially, supported by weddings and festivals, particularly in South India.
India accounted for 32% of global jewellery consumption, retaining its position as the world’s largest jewellery market. During January-September, jewellery demand declined 18% to 241 tonnes, while its value increased 29% to ₹3,61,830 crore.
Investment demand moderates
Bar and coin demand fell 40% year-on-year to 55 tonnes, partly due to a high comparative base, easing price momentum and the increase in import duty in May 2026. India remained the world’s second-largest market in this segment after China.
Gold ETF demand declined 50% to 5 tonnes, but improved from 4 tonnes in Q2. Holdings rose to around 124 tonnes, with inflows reaching a seven-month high in September. Digital gold purchases increased 44% to 5 tonnes during the quarter.
Unofficial imports increase
India’s total gold supply fell 43% to 136 tonnes. Net bullion imports, including official and unofficial inflows, stood at 114 tonnes. Official imports, including doré, declined 70% to 64 tonnes.
Unofficial inflows rose sharply to an estimated 50 tonnes from 3 tonnes a year earlier. The WGC attributed the increase partly to the higher import duty of 15% introduced in May 2026. Recycled gold supply declined 12% to 19 tonnes.
Buying intentions improve
A WGC-Kantar survey of 1,957 consumers across 12 cities found that the proportion expecting to increase jewellery purchases over the following three months rose to 29% from 20%.
Meanwhile, 77% were willing to consider lower-purity or carat options to manage higher prices, and interest in exchanging old jewellery increased to 76%.
“The July-September quarter 2026 reflected the continued resilience of gold demand in India, even as elevated prices influenced consumer purchasing behaviour,” World Gold Council, Regional CEO, India, Sachin Jain, said.
He noted that festive and wedding purchases, particularly in South India, and softer prices towards the end of the quarter supported jewellery demand.
Festive season expected to support demand
The WGC expects Dhanteras, Diwali and the wedding season to support demand in Q4, although high prices and weakness in the rural economy following a poor monsoon could limit volumes. Consumers are likely to favour lighter jewellery and exchange-led purchases.
The Council has projected India’s full-year gold demand for 2026 at 625-675 tonnes.