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During the January-March quarter this year, the demand for gold in the country increased by 10 percent on an annual basis to 151 tonnes. The World Gold Council (WGC) said in its report released on Wednesday that the main reason for this increase is the strong increase in investment demand amid the sharp rise in gold prices. Now the trend of demand for gold seems to be changing, where purchase for investment rather than jewelery is increasing rapidly. WGC said investment demand through gold bars, coins and ETFs increased by 54 percent to 82 tonnes during the quarter. This increase compensated to a great extent for the decline in jewelery demand. There was pressure on jewelery demand during the quarter and it declined by 19 per cent year-on-year to 66 tonnes. High prices have had an impact on consumption, especially among price-sensitive sections.
100 percent increase on value basis
WGC has estimated the demand for gold for the entire year to be between 650-750 tonnes, whereas last year it was 712 tonnes. The rising prices of gold in recent months have affected the budget of consumers. According to the report released by WGC titled Gold Demand Trend in the First Quarter of 2026, the total gold demand of the country in the first quarter of 2025 was 137 tonnes. In value terms, demand almost doubled in the January-March quarter of 2026, growing 99 percent year-on-year to a record Rs 2,27,500 crore ($25 billion).
10 percent increase in demand
Sachin Jain, Regional Chief Executive Officer (India), WGC, said India’s gold market in the first quarter of 2026 shows a gap between volume trends and value growth, influenced by record high prices and changing consumer preferences. The total demand stood at 151 tonnes, which is 10 percent more than in the first quarter of 2025, while in value terms the demand almost doubled to Rs 99,900 crore, which represents a growth of 99 percent on an annual basis.
Increase in demand for gold bars and coins
Domestic gold prices (on the Multi Commodity Exchange) rose 81 percent year-on-year to an average of Rs 1,51,108 per 10 grams in the first quarter of 2026, compared to Rs 83,375 in the same period last year. Demand for gold bars and coins increased by 34 percent to 62 tonnes, the highest level in the first quarter since 2013. In value terms, this demand increased by 142 percent to Rs 94,100 crore, reflecting a trend away from the traditionally jewellery-dominated market.
