Elevated gold prices dampened demand volumes in India during the June quarter, with total consumption declining 6% year-on-year to 131.4 tonnes from 139.7 tonnes. However, consumers spent significantly more on the yellow metal, with the total value of purchases rising 50% to Rs 1.98 lakh crore from Rs 1.33 lakh crore a year earlier.
According to the World Gold Council's (WGC) latest report released on Thursday, the sharp increase in value reflects the steep rise in gold prices over the past year.
"Total gold demand in the country fell to 131.4 tonnes in the April-June quarter of 2026 from 139.7 tonnes in the corresponding period last year, a decline of nearly 6%. However, the total value of purchases jumped 50% from Rs 1.33 lakh crore to Rs 1.98 lakh crore," the report said.
Sachin Jain, CEO, WGC India, said the June quarter trends underscore the evolving nature of gold demand in the country.
"Consumers are adapting their purchasing decisions to balance affordability with long-term value. This shift is particularly evident in the jewellery market," Jain said.
Jewellery demand fell 15% to 75.1 tonnes from 88.8 tonnes a year ago. However, in value terms, purchases rose 34% to Rs 1.13 lakh crore from Rs 84,200 crore, aided by seasonal buying during festivals.
The report noted that while consumers' appetite for gold remains intact, rising prices are reshaping purchasing patterns. Buyers are increasingly opting for smaller quantities, lighter-weight or lower-carat jewellery and making greater use of exchange programmes to optimise spending.
Investment demand, meanwhile, remained resilient. Demand for gold bars and coins rose 9% to 50.3 tonnes, while the value of such purchases surged 73% to Rs 75,750 crore from Rs 43,760 crore a year earlier.
Gold ETF demand also strengthened, increasing 49% to 4.2 tonnes from 2.8 tonnes. In value terms, ETF investments jumped 136% to Rs 6,300 crore from Rs 2,670 crore, despite global outflows.
Industrial demand edged down 4% to 1.9 tonnes from 2 tonnes in the year-ago period. However, the value of industrial demand rose 52% to Rs 2,840 crore.
Looking ahead, the WGC expects gold to remain an integral part of household savings and investment portfolios, supported by its status as a trusted store of value and a hedge against uncertainty.
"We estimate full-year gold demand at 650-750 tonnes," Jain said.