Image used for representational purpose only.
| Photo Credit: Getty Images
India’s gold demand fell 29% year-on-year to 162.5 tonnes in July-September quarter amid higher import duty, soaring prices and the Prime Minister’s appeal to curb purchases, the World Gold Council (WGC) said, projecting full-year demand at 625-675 tonnes.
Gold demand was at 229.8 tonnes during the corresponding quarter of 2025, WGC’s ‘Q3 2026 Gold Demand Trends’ report said on Tuesday (November 3, 2026).
However, gold demand value was up by 3% at ₹2,41,900 crore compared to ₹2,35,090 crore in the same quarter of last year.
The average gold price during the quarter was $4,262 a troy ounce (₹1,48,891 per 10 grams) in comparison to $3,457 (₹1,02,287) in the same period of 2025 (without import duty and GST).
Total jewellery demand in India dipped by 20% to 99.9 tonnes as compared to 125 tonnes in the same quarter of 2025, while in value terms it was up 16% at ₹1,48,700 crores.
“The July-September quarter 2026 reflected the continued resilience of gold demand in India, even as elevated prices influenced consumer purchasing behaviour. Total demand stood at 162.5 tonnes, with its value reaching ₹2,41,900 crores. This highlights how consumers continue to prioritise gold while adapting their purchases to balance affordability with long-term value,” WGC Regional CEO, India, Sachin Jain, told PTI.
He said this was particularly evident in the jewellery segment, where demand declined by 20% year-on-year, while its value increased by 16%.
“Jewellery demand was supported by a pullback in gold prices late in the third quarter, which encouraged some deferred purchases. Wedding and festive buying also supported demand, particularly in South India, where key festivals fell in August. Consumers are increasingly opting for more considered purchases and exchange programmes to navigate higher prices, while retaining their preference for gold jewellery,” he added.
Total bar and coin demand declined by 40% during the quarter under review at 55 tonnes compared with 91.6 tonnes, while total demand for gold ETFs (exchange-traded funds) dipped by 50% at 5.3 tonnes during the quarter under review from 10.7 tonnes last year.
The Reserve Bank of India did not purchase gold in the third quarter of 2026 in comparison to 0.2 tonnes in the same quarter of 2025, the report stated.
Total gold recycled in India in July-September was 19.2 tonnes, down 12% compared to 21.8 tonnes in the same quarter last year.
Net gold imports in India during the quarter under review were down 46% at 114.1 tonnes from 211.9 tonnes in the same quarter last year.
On the supply side, Mr. Jain said official bullion imports declined sharply, recycling remained muted, and preliminary estimates indicated a rise in unofficial inflows.
Looking ahead, he said, the upcoming festive and wedding season is expected to provide support to gold demand.
“The recent improvement in seasonal buying sentiment and preparations by jewellers ahead of the festive period are encouraging signs. While elevated prices may continue to influence purchasing decisions, we expect consumers to adapt through lighter-weight jewellery and exchange-led purchases. We anticipate full-year demand to range between 625 and 675 tonnes,” Mr. Jain added.
Published – November 03, 2026 01:25 pm IST
