India Gold Demand Mixed as Jewellery Sales Rise, Imports Fall: WGC
Gold | 2026-07-20 08:03:21
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).
By Paul Ploumis
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.
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Frequently Asked Questions
- What drove higher jewellery purchases in India during June?
The sharp correction in gold prices, along with festive promotions, exchange offers, and flexible payment schemes, encouraged consumers to return to jewellery stores.
- Which gold investment products gained popularity?
Gold ETFs and digital gold platforms attracted increased investor interest, while demand for physical gold bars and coins declined.
- Why did India's gold imports fall for a second straight month?
Imports declined because of softer consumer demand, sufficient domestic inventories, higher recycling volumes, and discounted domestic gold prices.
