India’s Gold Jewellery Demand Dips 15% in Q2 Amid High Prices
By Market Desk
India’s gold jewellery demand fell 15% to 75 tonnes in Q2 2026 due to high prices, despite a 26% value increase in H1 to $21 billion. Global demand also dropped.
Indian gold jewellery demand saw a notable decline in the second quarter of 2026, dropping by 15% to 75 tonnes. This reduction, primarily attributed to elevated gold prices, was reported by the World Gold Council.
- Indian Gold Jewellery Demand (Q2 2026): 75 tonnes
- Year-over-year Volume Decrease: 15%
- Global Jewellery Demand Drop: 17%
The domestic trend in India mirrored a global 17% drop in jewellery demand, with consumers worldwide opting for lighter-weight pieces. Despite this year-over-year volume decrease, Indian jewellery demand demonstrated a 14% sequential recovery from the first quarter of 2026.
- Indian Jewellery Demand Sequential Recovery (from Q1 2026): 14%
- First Half 2026 Demand Value: $21 billion
- Year-over-year Value Increase (H1 2026): 26%
While volumes decreased, the financial value of demand for the first half of 2026 reached $21 billion, marking a substantial 26% increase from the previous year. This indicates that high prices are effectively sustaining the overall cash flow into the market.
Globally, central banks emerged as significant buyers, collectively adding 289 tonnes to their gold reserves. The Reserve Bank of India also contributed to this trend, acquiring a modest 200 kg during the period.
- Global Central Bank Gold Additions: 289 tonnes
- Reserve Bank of India Gold Additions: 200 kg
Retail investment in gold-backed exchange-traded funds experienced net outflows. However, the over-the-counter market played a crucial role by providing a buffer against these outflows.
The primary risk for both investors and the jewellery sector continues to be price sensitivity. This sensitivity could exert ongoing pressure on retail volumes and potentially impact the revenue growth trajectories of retailers.