Indian Gold Purchases Fall 6 Percent to 131.4 Tonnes in Q2 as Soaring Prices Impact Buyers According to the World Gold Council, India's gold demand dropped 6 percent to 131.4 tonnes in the April to June 2026 quarter. Despite lower physical volumes due to high prices and increased customs duty, total spending rose 50 percent to Rs 1.98 lakh crore. Gold demand across India registered a clear deceleration during the second quarter spanning April to June 2026. According to the latest report published by the World Gold Council (WGC), aggregate gold consumption in the country declined by 6 percent year-on-year to 131.4 tonnes. In the corresponding April-to-June period of 2025, total gold purchases in India had reached 139.7 tonnes. A combination of historic highs in retail gold prices, recent hikes in import custom duties, and an unseasonal lull in major cultural and wedding events created strong headwinds for retail buyers. Total Expenditure Surges 50 Percent to Rs 1.98 Lakh Crore Despite Lower Volumes Although high prices constrained the physical weight of gold bought by retail consumers, the total monetary valuation of gold acquisitions reached unprecedented heights. Data released in the report indicates that Indian buyers spent approximately Rs 1.98 lakh crore on gold during the April-June 2026 quarter. This reflects a substantial surge of nearly 50 percent compared to the overall financial expenditure incurred during the same quarter of the previous year. The divergence highlights how elevated market valuations compelled households and investors to deploy significantly larger capital reserves even while securing lower physical volumes of the metal. Jewellery Demand Plunges 15 Percent Amid Off-Season and Policy Factors The consumer jewellery segment witnessed the most severe contraction among all gold categories during the three-month period. Demand for gold jewellery slumped by 15 percent year-on-year to settle at 75.1 tonnes. Industry analysts attribute this drop partly to seasonal patterns, as the second quarter typically lacks key auspicious wedding dates and major festival shopping windows. Furthermore, public buying behavior was influenced by Prime Minister Narendra Modi's public call urging citizens to avoid non-essential gold purchases, prompting many discretionary consumers to defer major jewellery shopping until market conditions normalize. Investment Demand Remains Solid via Bars, Coins, and Gold ETFs In contrast to the subdued consumer enthusiasm for traditional jewellery, investment-driven demand for gold exhibited steady resilience. Purchases of physical gold bars and coins grew by 9 percent during the April to June quarter. Concurrently, Gold Exchange Traded Funds (ETFs) sustained positive inflows from institutional and retail investors seeking portfolio diversification. Amid ongoing macroeconomic inflation pressures and global financial volatility, Indian investors continue to view gold as a premier safe-haven asset for long-term wealth protection. Full-Year 2026 Outlook and Potential Seasonal Rebound Looking ahead at the remainder of the calendar year, the World Gold Council projects India's overall gold demand for 2026 to remain between 650 tonnes and 750 tonnes. Market experts anticipate that if international bullion prices cool down in the coming months or if duty structures are adjusted, consumer demand could experience a robust recovery during the upcoming festival period and winter wedding season. What this means for you Across India: Record high gold prices and elevated customs duties mean retail buyers must allocate significantly larger budgets even for smaller jewellery purchases. However, for retail investors, systematic allocations into Gold ETFs or physical coins during price corrections continue to provide a dependable hedge against inflation. Questions & Answers 1. What was India's total gold demand in the April-June 2026 quarter? According to the World Gold Council, India's total gold demand was 131.4 tonnes in the April-June 2026 quarter, down 6 percent from 139.7 tonnes in the previous year. 2. Why did total expenditure rise despite lower physical gold volume? Due to record-high gold prices, buyers had to pay higher amounts for smaller quantities, raising total spending by 50 percent to Rs 1.98 lakh crore. 3. By how much did jewellery demand fall and what caused the decline? Jewellery demand dropped 15 percent to 75.1 tonnes due to the off-season, high prices, and PM Narendra Modi's appeal to curtail non-essential gold buys. 4. Did gold investment demand see any growth during Q2 2026? Yes, investment appetite remained strong, with gold bar and coin demand rising by 9 percent along with steady inflows into Gold ETFs. 5. What is the full-year 2026 gold demand projection for India? The World Gold Council projects India's total gold demand for 2026 to fall between 650 tonnes and 750 tonnes. https://trendkia.com/en/business/india-men-apraila-se-juna-ki-timahi-men-sone-ki-manga-6-pratishata-ghati-unchi-kimaton-se-badala-ganita-12170 TrendKia — Har trend, sabse pehle.