India Gold Demand Mixed as Jewellery Sales Rise, Imports Fall: WGC

Gold | 2026-07-20 08:03:21 | By Paul Ploumis

The lower gold prices encouraged jewellery purchases, whereas overall consumer demand remained below normal levels, according to the latest market assessment by the World Gold Council (WGC).

Summary

Lower gold prices in June encouraged jewellery buying, supported by retailer promotions, exchange offers, and flexible payment plans, although overall consumer demand remained subdued.
Investor preference shifted toward gold ETFs and digital gold, while demand for physical gold bars and coins weakened.
India's gold imports fell for a second consecutive month to a one-year low due to softer demand, ample domestic inventories, increased recycling, and discounted local prices.

SEATTLE (Scrap Monster): India's gold market presented a mixed picture during June and early July. The lower gold prices encouraged jewellery purchases, while overall consumer demand remained below normal levels, according to the latest market assessment by the World Gold Council (WGC).

Global and domestic gold prices dropped sharply in June before stabilizing this month. The price correction encouraged many consumers who had delayed purchases to return to jewellery stores, aided by festive promotions, exchange offers and flexible payment schemes introduced by leading retailers.

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Gold exchange-traded funds (ETFs) and digital gold platforms attracted fresh investor interest. In contrast, demand for physical gold bars and coins weakened, reflecting reduced interest in traditional investment products amid falling prices.

India's major listed jewellery companies also reported healthy revenue growth during the April-June quarter, supported by wedding purchases, seasonal festivals and higher customer spending.

Meanwhile, India's gold imports declined for the second straight month, reaching their lowest level in a year. Softer consumer demand, sufficient domestic inventories, and increased recycling reduced the need for fresh imports. Domestic gold prices also continued to trade at a discount.