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Global gold demand remained largely unchanged year-on-year at 1,269 tonnes in the April-June quarter, while India's gold consumption declined 6% to 131.4 tonnes as elevated prices, higher Customs duty and weaker seasonal demand weighed on purchases, according to the World Gold Council's (WGC) Q2 2026 Gold Demand Trends report.
The report showed global gold demand at 1,269 tonnes in the second quarter, compared with 1,268.6 tonnes a year earlier. Demand in the first half of 2026 rose 2% year-on-year to an estimated 2,522 tonnes, valued at $380 billion.
Investment in gold exchange-traded funds (ETFs), bars and coins declined to 262 tonnes during the quarter as lower gold prices moderated the strong investment momentum seen earlier this year. The fall was primarily driven by 45 tonnes of outflows from gold-backed ETFs, although first-half ETF demand remained positive at 18 tonnes.
Bar and coin investment slipped 3% year-on-year in the quarter, but first-half demand was still 21% higher than the corresponding period last year. Meanwhile, over-the-counter (OTC) demand, supported by Asian investors, stood at 327 tonnes in the second quarter and 571 tonnes in the first half.
Central banks and other official institutions added a net 289 tonnes to gold reserves during the April-June quarter, up 62% year-on-year, led by purchases from Poland, China and the Czech Republic, WGC Regional CEO, India, Sachin Jain told PTI. He added that the Reserve Bank of India purchased 200 kg of gold during the quarter.
High prices continued to weigh on global jewellery demand, which fell 17% year-on-year as consumers bought less gold and shifted towards lighter products. However, jewellery demand by value remained resilient, rising 22% year-on-year in the first half to $86 billion.
Global gold supply remained unchanged at 1,269 tonnes during the quarter. Mine production increased 2% year-on-year to 966 tonnes, supported by new output from Canada and Chile, while recycling declined 6% despite elevated prices.
In India, total gold demand fell to 131.4 tonnes from 139.7 tonnes a year ago. Jain attributed the decline to seasonally subdued demand, the increase in Customs duty and Prime Minister Narendra Modi's appeal to reduce non-essential gold purchases.
Despite lower volumes, the value of India's gold demand reached a record ₹1,98,100 crore, compared with ₹1,32,500 crore in the year-ago period, reflecting a 50% increase as consumers continued to prioritise gold even at elevated prices, Jain told PTI.
The WGC expects India's gold demand to remain in the 650-750 tonnes range in 2026. Jain said demand is likely to settle around the middle of that range, although lower gold prices and a reduction in Customs duty could push consumption towards the upper end.
India's jewellery demand declined 15% year-on-year to 75.1 tonnes, while bar and coin investment rose 9% to 50.3 tonnes. Indian gold ETFs recorded net inflows of 4.2 tonnes, even as global ETFs witnessed outflows.
Jain also flagged the risk of increased smuggling following the Customs duty hike, saying reports of illicit gold entering the market had already begun to emerge and would be closely monitored.
The report showed gold recycling in India fell 17% year-on-year to 19.2 tonnes, while imports declined 23% to 98.1 tonnes during the quarter. The average gold price stood at $4,506.3 an ounce globally, while the average quarterly price in India rose to ₹1,50,744.8 (excluding import duty and GST), compared with ₹94,875.9 a year earlier.
WGC Senior Markets Analyst Louise Street said gold prices consolidated during the second quarter after correcting from record highs, but the market remained well supported by continued central bank buying and growth in OTC investment.
She said investment is expected to remain the primary driver of gold demand in the second half of 2026, with OTC activity and Asian investors likely to play a larger role. Central banks are expected to continue buying gold, albeit at a slower pace, while elevated prices are likely to keep pressure on jewellery demand and recycling.
Also read: MCX gold, silver largely steady today: Key factors to watch
The report showed global gold demand at 1,269 tonnes in the second quarter, compared with 1,268.6 tonnes a year earlier. Demand in the first half of 2026 rose 2% year-on-year to an estimated 2,522 tonnes, valued at $380 billion.
Investment in gold exchange-traded funds (ETFs), bars and coins declined to 262 tonnes during the quarter as lower gold prices moderated the strong investment momentum seen earlier this year. The fall was primarily driven by 45 tonnes of outflows from gold-backed ETFs, although first-half ETF demand remained positive at 18 tonnes.
Bar and coin investment slipped 3% year-on-year in the quarter, but first-half demand was still 21% higher than the corresponding period last year. Meanwhile, over-the-counter (OTC) demand, supported by Asian investors, stood at 327 tonnes in the second quarter and 571 tonnes in the first half.
Central banks and other official institutions added a net 289 tonnes to gold reserves during the April-June quarter, up 62% year-on-year, led by purchases from Poland, China and the Czech Republic, WGC Regional CEO, India, Sachin Jain told PTI. He added that the Reserve Bank of India purchased 200 kg of gold during the quarter.
High prices continued to weigh on global jewellery demand, which fell 17% year-on-year as consumers bought less gold and shifted towards lighter products. However, jewellery demand by value remained resilient, rising 22% year-on-year in the first half to $86 billion.
Global gold supply remained unchanged at 1,269 tonnes during the quarter. Mine production increased 2% year-on-year to 966 tonnes, supported by new output from Canada and Chile, while recycling declined 6% despite elevated prices.
In India, total gold demand fell to 131.4 tonnes from 139.7 tonnes a year ago. Jain attributed the decline to seasonally subdued demand, the increase in Customs duty and Prime Minister Narendra Modi's appeal to reduce non-essential gold purchases.
Despite lower volumes, the value of India's gold demand reached a record ₹1,98,100 crore, compared with ₹1,32,500 crore in the year-ago period, reflecting a 50% increase as consumers continued to prioritise gold even at elevated prices, Jain told PTI.
The WGC expects India's gold demand to remain in the 650-750 tonnes range in 2026. Jain said demand is likely to settle around the middle of that range, although lower gold prices and a reduction in Customs duty could push consumption towards the upper end.
India's jewellery demand declined 15% year-on-year to 75.1 tonnes, while bar and coin investment rose 9% to 50.3 tonnes. Indian gold ETFs recorded net inflows of 4.2 tonnes, even as global ETFs witnessed outflows.
Jain also flagged the risk of increased smuggling following the Customs duty hike, saying reports of illicit gold entering the market had already begun to emerge and would be closely monitored.
The report showed gold recycling in India fell 17% year-on-year to 19.2 tonnes, while imports declined 23% to 98.1 tonnes during the quarter. The average gold price stood at $4,506.3 an ounce globally, while the average quarterly price in India rose to ₹1,50,744.8 (excluding import duty and GST), compared with ₹94,875.9 a year earlier.
WGC Senior Markets Analyst Louise Street said gold prices consolidated during the second quarter after correcting from record highs, but the market remained well supported by continued central bank buying and growth in OTC investment.
She said investment is expected to remain the primary driver of gold demand in the second half of 2026, with OTC activity and Asian investors likely to play a larger role. Central banks are expected to continue buying gold, albeit at a slower pace, while elevated prices are likely to keep pressure on jewellery demand and recycling.
Also read: MCX gold, silver largely steady today: Key factors to watch
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