Indians Buy 15% Less Gold Jewellery, Here's What Is Driving Buyers Away?

Mumbai: Gold jewellery demand in India weakened during the April-June quarter of 2026 as elevated prices forced consumers to postpone purchases or choose lighter ornaments, according to a World Gold Council report.

India’s gold jewellery demand fell 15 percent year-on-year to 75 tonnes during the three-month period. Globally, jewellery demand stood at 278 tonnes, marking the second-weakest quarterly level since the Covid-19 pandemic.

Prices Pinch

Persistently high gold prices were the main reason behind the decline. Many consumers delayed their jewellery purchases, while those who entered the market preferred lightweight pieces instead of heavier ornaments.

However, demand in India during the second quarter was 14 percent higher than in the first three months of 2026. Despite this sequential recovery, purchases remained lower compared with the corresponding period last year.

Higher Spending

India’s total gold jewellery demand during the first six months of 2026 stood at 141 tonnes, down 17 percent from the same period a year earlier.

However, the value of these purchases increased by more than 26 percent to USD 21 billion because of higher gold prices. This meant that consumers purchased less gold by volume but paid considerably more for it.

Global gold demand stood at nearly 1,269 tonnes during the April-June quarter, broadly unchanged from the previous year.

Investment in gold exchange-traded funds, bars and coins declined to 262 tonnes during the quarter. However, investment in gold bars and coins during the first half of 2026 was 21 percent higher year-on-year.

Central Banks

Central banks continued to add gold to their reserves. They collectively purchased 289 tonnes during the quarter, registering a 62 percent increase over the corresponding period last year.

The Reserve Bank of India also bought 200 kilograms of gold during the April-June period.

Demand Outlook

The WGC expects investment demand for gold to remain strong during the second half of 2026. However, jewellery purchases could stay under pressure if prices remain elevated.

Consumers may continue postponing discretionary purchases or shift towards lightweight jewellery to keep their overall spending under control.