While international prices have remained an important factor for bullion markets, India’s gold demand has also shown signs of weakness.
According to the World Gold Council’s (WGC) ‘Q3 2026 Gold Demand Trends’ report, India’s total gold demand declined by 29 per cent year-on-year to 162.5 tonnes during the July-September quarter of 2026.
The country had recorded gold demand of 229.8 tonnes during the corresponding quarter of 2025.
The WGC attributed the decline to higher import duty, rising gold prices and the Prime Minister’s appeal to people to reduce gold purchases.
Despite the fall in the quantity of gold purchased, the total value of demand increased. India’s gold demand value rose by 3 per cent to Rs 2,41,900 crore during the quarter, compared with Rs 2,35,090 crore in the same period last year.
This increase in value came even as consumers purchased less gold, reflecting the impact of higher prices.
The average gold price during the July-September quarter stood at USD 4,262 per troy ounce, equivalent to Rs 1,48,891 per 10 grams. In the corresponding quarter of 2025, the average price was USD 3,457 per ounce, or Rs 1,02,287 per 10 grams. These prices were calculated without import duty and GST.