India's 2026 gold demand seen falling to six-year low on price rise

SENSEX 76,580.13

+ 887.35

NIFTY 23,667.10

+ 226.30

CRUDEOIL 9,260.00

+ 188.00

GOLD 138,915.00

 -1,271.00

SILVER 178,557.00

 -5,222.00

SENSEX 76,580.13

+ 887.35

NIFTY 23,667.10

+ 226.30

NIFTY 23,667.10

+ 226.30

CRUDEOIL 9,260.00

+ 188.00

CRUDEOIL 9,260.00

+ 188.00

GOLD 138,915.00

 -1,271.00

'; } document.getElementById("lgdv").innerHTML = htmlElements; } function numberformat(i) { return Number(parseFloat(i).toFixed(2)).toLocaleString('en', { minimumFractionDigits: 2 }) } async function gatherResponse(response) { const { headers } = response; const contentType = headers.get('content-type') || ''; if (contentType.includes('application/json')) { return await response.json() } return response.text(); } function getWidth() { if (Math.max(document.body.scrollWidth,document.documentElement.scrollWidth,document.body.offsetWidth,document.documentElement.offsetWidth,document.documentElement.clientWidth) > 991) { document.getElementById("mob").style.display = "none"; document.getElementById("lgdv").style.display = "block"; } else { document.getElementById("mob").style.display = "block"; document.getElementById("lgdv").style.display = "none"; } } getWidth(); THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.

Gold demand fell 29% y-o-y to 162.5 metric tonnes in the September quarter, as jewellery purchases declined 20% ‌and investment demand dropped 40%

By Reuters

Updated - November 03, 2026 at 12:13 PM. | MUMBAI

India’s gold demand is expected to fall to a six-year ​low in 2026. | Photo Credit: SIVARAM V

India's gold demand is expected to fall to a six-year ​low in 2026, as elevated prices weigh on jewellery ‌sales and investment demand moderates, the World ​Gold Council (WGC) said on Tuesday.

The country, ⁠the world's biggest gold consumer after China, is grappling with rising living costs in the wake of ‌the Iran war, while a weak monsoon could curtail rural demand for jewellery.

Jewellery demand fell ‌in the first nine months of ‌the ⁠year, which will drag down total demand ⁠to around 650 metric tonnes, the lowest since 2020 when the COVID-19 pandemic forced jewellery shops to close, Sachin Jain, ​chief executive of ‌the WGC's Indian operations, told Reuters.

Gold demand fell 29 per cent year-on-year to 162.5 metric tonnes in the September quarter, as jewellery purchases declined 20 per cent ‌and investment demand dropped 40 per cent, Jain said.

Demand is ​likely to improve in the December quarter as key festivals such as Diwali ⁠and the wedding season drive purchases, he said.

Indians celebrated Dussehra in October and will celebrate Diwali ‌in early November, when buying gold is considered auspicious.

But high prices and weakness in the rural economy following a poor monsoon are likely to cap demand, the WGC said in a report published on Tuesday.

More than half of India's ‌gold demand comes from rural areas where jewellery is ​a traditional store of wealth for millions.

The monsoon delivered its lowest rainfall in ⁠more than a decade in 2026, curbing agricultural production ⁠and reducing farmers' incomes.

India's gold imports fell in the September quarter, partly due to ‌a rise in unofficial inflows after the government raised import duties on the precious metal ​earlier this year, Jain said.

Published on November 3, 2026

THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS. THIS AD SUPPORTS OUR JOURNALISM. SUBSCRIBE FOR MINIMAL ADS.Sign into Unlock benefits!

• Access 10 free stories per month
• Get notified by email for early preview to new features, discounts & offers