India’s gold demand declined 6 per cent year-on-year to 131.4 tonnes in the April-June quarter, as higher import duty, elevated prices and subdued seasonal demand weighed on purchases, according to the World Gold Council’s (WGC) latest report.
Jewellery demand fell 15 per cent to 75 tonnes, marking the second-lowest quarterly level since the WGC began tracking data in 2000. Despite the decline, India retained its position as the world’s largest gold jewellery market, accounting for 27 per cent of global demand, ahead of China.
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The report said demand received temporary support from Akshaya Tritiya and the wedding season as gold prices eased from their first-quarter highs. However, buying weakened during the inauspicious period between mid-May and mid-June and after the government raised import duty by 9 per cent.
The WGC also highlighted a rise in unofficial gold imports following the tariff hike, saying the widening price gap between legal and smuggled gold has hurt organised retailers. According to the council, exchange schemes gained popularity during the quarter, with retailers reporting a 10-20 per cent rise in exchange transactions. In some stores, exchanged jewellery accounted for nearly 70 per cent of sales.
Investment demand also moderated sharply, falling to 54 tonnes from an average of 100 tonnes over the previous three quarters. Gold ETF demand declined 80 per cent to just four tonnes, the weakest level since the second quarter of 2025.
India’s total gold supply fell to 120 tonnes, the lowest in six years, while net imports dropped 23 per cent to 98.1 tonnes.
Looking ahead, the WGC expects demand to remain sensitive to prices but supported by festive and wedding purchases. However, persistently high prices and an uncertain monsoon could continue to weigh on consumption.
