India’s Gold Market Recovery Accelerates as Demand and Imports Rise
Gold | 2026-08-20 11:18:48
Investment demand continues to provide support. Indian gold ETFs recorded net inflows of INR 1,560 crore in July, taking total holdings to about 120 tonnes.
By Paul Ploumis
India Gold Market Recovery Gains Pace as Jewellery Demand and Imports Rise
MONTREAL (Scrap Monster): India's gold market is showing signs of recovery after the sharp price correction seen in June, according to a recent report published by the World Gold Council (WGC). Jewellery demand and gold imports have witnessed significant improvement during recent weeks, it noted.
What Readers Should Know
- International gold prices climbed 9% in the first half of August to around $4,391/oz.
- Domestic Indian gold prices rose nearly 7% to INR 151,744 per 10 grams.
- Jewellery demand improved as consumers acted on relatively stable prices.
- Indian gold ETFs recorded net inflows of INR 1,560 crore in July.
- Gold imports more than doubled in value to $4.16 billion from $1.97 billion in June.
- WGC sees a potentially stronger festive season ahead.
Why Prices Moved
International gold prices climbed 9% during the first half of August to around $4,391 an ounce, while domestic prices increased nearly 7% to INR 151,744 per 10 grams. The recovery was supported by changing expectations for monetary policy, a weaker US dollar, and continued investment in gold-backed exchange-traded funds (ETFs).
What the Demand Data Showed
Jewellery demand has improved as consumers took advantage of relatively stable gold prices. Retailers and manufacturers have started rebuilding inventories ahead of the festive season. Also, the exchange of old jewellery for new gold continues to be an important source of supply.
Investment demand continues to provide support. Indian gold ETFs recorded net inflows of INR 1,560 crore in July, taking total holdings to about 120 tonnes.
Gold futures activity also strengthened in July, with average daily MCX volumes rising to 14.9 tonnes. Meanwhile, gold imports more than doubled in value to $4.16 billion from $1.97 billion in June. The improving demand picture points to a potentially stronger festive season, the WGC report noted.
Also Read:
What Happens Next
Looking forward, investment demand is likely to lend support to the market, though high gold prices are feared to limit jewellery purchases.
People Also Ask
Is India's gold market recovering?
Yes. The market is showing signs of recovery, supported by improving jewellery demand, higher imports and strong investment interest.
How much did gold prices rise in August?
International gold prices climbed 9% in the first half of August to around $4,391 an ounce.
What is the current domestic gold price in India?
Domestic prices increased nearly 7% to INR 151,744 per 10 grams.
How much gold did Indian ETFs attract in July?
Indian gold ETFs recorded net inflows of INR 1,560 crore in July, taking total holdings to about 120 tonnes.
How did gold imports change from June to July?
Gold imports more than doubled in value to $4.16 billion from $1.97 billion in June.
Explore More
- WGC Reports Resilient Global Gold Demand in Q2 Amid Lower Prices
- Gold Surges as ETF Buying and Softer US Jobs Data Lift Prices
- World Gold Council Highlights Gold's Portfolio Benefits Over Other Commodities
Courtesy: World Gold Council (WGC)
POLL
What is likely to provide the strongest support to India’s gold market in the coming months?
Frequently Asked Questions
- Is India’s gold market recovering?
Yes. The market is showing signs of recovery, supported by improving jewellery demand, higher imports and strong investment interest.
- How strong was gold ETF demand in India?
Indian gold ETFs recorded net inflows of ₹1,560 crore in July, lifting total holdings to about 120 tonnes.
- What could limit India’s jewellery demand?
Persistently high gold prices could discourage some consumers from making jewellery purchases despite improving demand ahead of the festive season.
