India's Gold Demand Falls 29% to 162.5 Tonnes in Q3, WGC Projects 625-675 Tonnes for 2026

India's gold demand declined 29 per cent year-on-year to 162.5 tonnes during the July-September quarter of 2026, weighed down by elevated prices, higher import duty and the Prime Minister's appeal to curb gold purchases, according to the World Gold Council (WGC).

Gold demand stood at 229.8 tonnes in the corresponding quarter of 2025, while its overall value increased 3 per cent to Rs 2,41,900 crore from Rs 2,35,090 crore, the WGC's 'Q3 2026 Gold Demand Trends' report said on Tuesday.

The average gold price during the quarter rose to USD 4,262 per troy ounce (Rs 1,48,891 per 10 grams), compared with USD 3,457 (Rs 1,02,287) in the year-ago period, excluding import duty and GST.

Jewellery demand declined 20 per cent to 99.9 tonnes from 125 tonnes, although its value increased 16 per cent to Rs 1,48,700 crore. Meanwhile, bar and coin demand dropped 40 per cent to 55 tonnes, while gold exchange-traded fund (ETF) demand fell 50 per cent to 5.3 tonnes.

WGC Regional CEO, India, Sachin Jain said consumers continued to prioritise gold despite high prices, adapting their purchases to balance affordability with long-term value. He attributed some support to jewellery demand to a late-quarter correction in gold prices, wedding and festive purchases, particularly in South India, and exchange programmes.

The Reserve Bank of India made no gold purchases during the quarter, compared with 0.2 tonnes in the corresponding period last year. Gold recycling declined 12 per cent to 19.2 tonnes, while net gold imports fell 46 per cent to 114.1 tonnes.

Looking ahead, Jain said the upcoming festive and wedding season could support demand, with consumers increasingly opting for lightweight jewellery and exchange-led purchases.

The WGC expects India's full-year gold demand to range between 625 and 675 tonnes in 2026.