India Gold Demand Decline : The continuous rise in gold prices in India is now clearly affecting consumer purchases. Gold demand usually increases during festivals and the wedding season, but expensive prices have slowed market activity this time. Between July and September 2026, India's total gold demand declined by 29% year-on-year. According to the World Gold Council (WGC), this was the weakest performance for the period in the past six years.

Jewellery Purchases Witness A Sharp Decline
The jewellery market has been affected the most by the decline in gold demand. Between July and September, jewellery demand fell 20% to 99.9 tonnes, compared with 125 tonnes during the same period last year. However, due to rising gold prices, consumer spending on jewellery increased by 16% to Rs 1,48,700 crore. This means people purchased smaller quantities of gold but had to spend more money on them.

Gold Demand Reaches A Six-Year Low
According to the WGC report, India's total gold consumption declined by 29% to 162.5 tonnes in the third quarter of 2026. Between July and September last year, the figure stood at 229.8 tonnes. Despite the decline in demand, overall spending on gold increased. During this quarter, Indian consumers spent approximately Rs 2,41,900 crore on gold purchases, compared with around Rs 2,35,090 crore last year.

Demand For Coins And Gold ETFs Also Falls
The decline was not limited to jewellery, as purchases of gold for investment purposes also weakened. According to the report, demand for gold coins and bars fell 40% to 55 tonnes. Meanwhile, demand for Gold Exchange-Traded Funds (ETFs) declined by 50% to 5.3 tonnes. Despite this, investors continue to show interest in gold as a safe-haven investment amid global economic uncertainty.

Rural Markets Also Witness Weaker Purchases
Around half of India's total gold consumption comes from rural areas. This time, weak monsoon conditions and rising everyday expenses have affected the purchasing power of rural households. As a result, gold demand has also remained weak in villages. According to experts, high prices and pressure from household expenses are influencing purchasing decisions in the market.

Gold Demand May Remain Under Pressure Ahead
The report estimates that India's total gold demand for the full year 2026 will be around 650 tonnes. Experts believe that if prices continue to rise, purchases could also be affected during upcoming festivals and the wedding season. Jewellery businesses may therefore need to adjust their strategies according to changing customer preferences and budgets.