The country, the world’s second-largest gold consumer after China, faces rising living costs following the Iran war, while a weak monsoon could dampen rural demand for jewellery.
Key takeaways
India's 2026 gold demand is projected to hit a six-year low of 650 metric tons due to high prices, a weak monsoon, and rising living costs. Although festive seasons may boost purchases, rural economic constraints are expected to limit overall consumption.
- Total 2026 gold demand is forecast at 650 metric tons, the lowest level since 2020.
- September quarter demand fell 29% year-on-year, with investment demand dropping 40%.
- Low monsoon rainfall reduced agricultural production and farmer incomes, curbing rural jewellery purchases.
Summarised automatically by AI from the original article by Free Malaysia Today. AI can make mistakes, so check the original for details.
Demand is likely to improve in the December quarter as key festivals such as Diwali and the wedding season drive purchases. (EPA Images pic)MUMBAI: India's gold demand is expected to fall to a six-year low in 2026, as elevated prices weigh on jewellery sales and investment demand moderates, the World Gold Council (WGC) said on Tuesday.
The country, the world's biggest gold consumer after China, is grappling with rising living costs in the wake of the Iran war, while a weak monsoon could curtail rural demand for jewellery.
Jewellery demand fell in the first nine months of the year, which will drag down total demand to around 650 metric tons, the lowest since 2020 when the COVID-19 pandemic forced jewellery shops to close, Sachin Jain, chief executive of the WGC's Indian operations, told Reuters.
