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India's Gold Demand Set To Hit 6-Year Low In 2026: World Gold Council
Sentiment: NeutralHigh Priority
What Happened?
India's gold demand is projected to decline to 650 metric tons in 2026, the lowest since 2020, due to high prices and reduced consumer purchases, according to the World Gold Council.
Key points
- Gold demand in India is expected to fall to 650 metric tons in 2026.
- This would be the lowest demand level since 2020.
- Jewellery purchases declined by 20% in the September quarter.
- Investment demand for gold dropped by 40% year-on-year.
- Illegal gold imports surged over 1,500% in the third quarter of 2026.
Key insights
- High gold prices may lead consumers to defer purchases or opt for lighter jewellery.
- The rural economy's weakness could further limit gold demand.
- Illegal imports may continue to rise as buyers seek cheaper alternatives.
Why it matters
The decline in gold demand could impact the livelihoods of those dependent on the jewellery market.
Source
Times Now
