The demand for gold in the country has been declining. This is due to the increase in customs duty and the impact of Prime Minister Narendra Modi’s appeal to not buy this metal. According to the World Gold Council (WGC), gold demand in India fell by 6% on an annual basis in the April-June quarter of this year. It was 131.4 tonnes in the quarter under review, which was 139.7 tonnes in the same period last year. The central government in May this year increased the import duty on gold and silver from 6% to 15%. This increased the price of gold and silver. As a result, demand contracted. Sachin Jain, Regional CEO of WGC India, said that although demand has decreased in terms of volume, if we look at the price, it is a record.
Gold consumption in the quarter under review stood at Rs 1,98,100 crore, compared to Rs 1,32,500 crore in the June quarter of 2025. This is an increase of 50%. Despite the high prices, consumers have given priority to gold. In the April-June quarter, jewellery demand in India fell by 15% to 75.1 tonnes, compared to 88.9 tonnes in the same period last year. Prime Minister Narendra Modi had in May urged people to reduce non-essential purchases and hoard large amounts of foreign exchange reserves, which has had an impact on the market.
The average international price of gold in the April-June quarter of 2026 was $4,506.3 per ounce, compared to $3,280.4 in the same period of 2025. The average quarterly price per 10 grams in India (excluding import duty and GST) was Rs 1,50,744.8, compared to Rs 94,875.9 in the same period last year. The WGC has estimated that the total demand this year will be between 650 and 750 tonnes. According to Jain, demand is likely to increase during the wedding season. According to the report, global gold demand in the April-June quarter of this year was 1,269 tonnes. There has been no significant correction in this compared to the previous year. The total demand in the same period of 2025 was 1,268.6 tonnes. India’s total gold imports in the quarter under review fell by 23% to 98.1 tonnes, compared to 127.4 tonnes in the same period last year.
