India’s Gold Demand Expected to Hit Six-Year Low in 2026 Amid Rising Prices
India’s gold demand is expected to fall to around 650 metric tonnes in 2026, marking its lowest level since 2020, according to the World Gold Council (WGC). Rising gold prices and increasing living costs have weakened jewellery purchases and investment demand. A poor monsoon has also affected rural incomes, further reducing gold-buying capacity in a country where more than half of the demand comes from rural areas.
Gold demand declined 29% year-on-year to 162.5 metric tonnes during the September quarter. Jewellery purchases dropped 20%, while investment demand fell 40%. The WGC attributed the decline to elevated prices and economic pressures affecting household spending. India’s weak agricultural performance following its lowest monsoon rainfall in more than a decade has also affected farmers’ incomes and rural purchasing power.
Demand may improve during the December quarter, supported by Diwali celebrations and the wedding season, when gold purchases are traditionally considered auspicious. However, high prices and continued weakness in the rural economy are expected to limit the recovery. India’s gold imports also declined during the September quarter, partly due to increased unofficial inflows following the government’s decision to raise import duties earlier this year.
Pic courtesy: google/ images are subject to copyright
