CHENNAI: India's gold demand fell 29 per cent year-on-year to 162.5 tonnes in the July-September quarter amid higher import duty, soaring prices and the Prime Minister's appeal to curb purchases, the World Gold Council (WGC) said. It projected full-year demand at 625-675 tonnes.
Gold demand rose 25 per cent quarter-on-quarter to 162.5 tonnes in the third quarter (Q3) of 2026. Demand stood at 229.8 tonnes during the corresponding quarter of 2025, according to the WGC's 'Q3 2026 Gold Demand Trends' report released on Tuesday.
Despite the sharp year-on-year decline in Q3 demand by volume, its value rose 3 per cent to Rs 2,419 billion. The same trend was evident during the first nine months of 2026.
Demand fell 12 per cent to 444 tonnes, while its value increased 38 per cent to Rs 6,688 billion. This suggests that consumers and investors continued to allocate substantial sums to gold even as higher prices resulted in lower quantities being purchased.
Total jewellery demand in India dipped 20 per cent to 99.9 tonnes from 125 tonnes in the same quarter of 2025. However, in value terms, it rose 16 per cent to Rs 1,48,700 crore.
"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 Rs 2,41,900 crore. This highlights how consumers continue to prioritise gold while adapting their purchases to balance affordability with long-term value," Sachin Jain, WGC Regional CEO, India, told PTI.
Total bar and coin demand declined 40 per cent to 55 tonnes during the quarter under review, compared with 91.6 tonnes in the corresponding quarter last year. Demand for gold exchange-traded funds (ETFs) also dipped 50 per cent to 5.3 tonnes from 10.7 tonnes during the same period last year.
The Reserve Bank of India (RBI) did not purchase any gold in the third quarter of 2026, compared with 0.2 tonnes in the same quarter of 2025, the report stated.
Gold recycled in India during July-September stood at 19.2 tonnes, down 12 per cent from 21.8 tonnes in the corresponding quarter last year.
Net gold imports into India during the quarter under review fell 46 per cent to 114.1 tonnes from 211.9 tonnes in the same quarter last year.