Mumbai — India’s gold demand fell 6% year-over-year to 131.4 metric tons during the April-to-June quarter of 2026, as high prices, increased customs duties and weaker seasonal buying weighed on purchases, according to the World Gold Council.
Total demand declined from 139.7 metric tons in the same quarter a year earlier, with jewelry consumption recording the sharpest drop, the council said in its latest Gold Demand Trends report.
Jewelry demand fell 15% to 75.1 metric tons from 88.8 metric tons a year ago. Investment demand, however, remained comparatively resilient.
The decline followed an appeal by Prime Minister Narendra Modi in May for consumers to limit nonessential gold purchases and consider other savings options to reduce pressure on India’s foreign exchange reserves amid rising import costs and volatile crude oil prices.
“I would appeal to people not to buy gold for weddings for one year,” Modi said in May as tensions in the Middle East fueled uncertainty in global commodity markets.
Gold and silver prices fell as much as 1% on the Multi Commodity Exchange on Thursday as traders booked profits following the U.S. Federal Reserve’s policy decision.
An analyst said gold’s ability to remain near $4,080 reflected the competing effects of tighter monetary policy and escalating geopolitical risks in the Middle East.
The Federal Reserve left interest rates unchanged and reduced expectations of an immediate rate increase in September. Analysts said continued geopolitical uncertainty could renew demand for gold as a safe-haven asset.
However, the Fed’s commitment to returning inflation to its 2% target could create a difficult short-term environment for bullion prices.
Market participants are now expected to focus on the Reserve Bank of India’s monetary policy decision next week, the Federal Reserve’s September meeting and the approaching festive season in India.
Analysts said those developments, along with global economic and geopolitical conditions, would help determine gold prices and jewelry sales in the coming months. (Source: IANS)
