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Impact of Modi's Appeal! Gold Demand Drops 6% in 90 Days; Jewelry Hit, Investment Rises
Delhi: India's gold demand fell by 6% year-on-year to 131.4 tonnes during the April-June quarter of the current financial year. In the same period last year, demand stood at 139.7 tonnes. According to a World Gold Council (WGC) report, adverse weather conditions, a hike in customs duty, and Prime Minister Narendra Modi's appeal to avoid unnecessary gold purchases were the primary reasons for this decline.
**Record Transaction Value**
Although demand volume decreased, the period set a record in terms of value. Total gold transactions reached ?1,98,100 crore in the April-June quarter, up from ?1,32,500 crore in the previous year—marking an increase of approximately 50% in transaction value over the year. Sachin Jain, Regional CEO of WGC, noted that despite gold prices hovering at record highs, consumers continue to prioritize gold as a safe investment option.
**Jewelry Demand Drops 15%**
Demand for jewelry fell by 15% to 75.1 tonnes, down from 88.8 tonnes the previous year. Sales were impacted by rising prices and the off-season period.
**Rise in Investment via Gold Bars and Coins**
Conversely, demand for gold as an investment increased. Demand for gold bars and coins rose by 9% to 50.3 tonnes. Even as investments in gold ETFs declined globally, Indian gold ETFs saw a net inflow of 4.2 tonnes.
**Mention of Modi's Appeal**
In May, Prime Minister Modi had urged citizens to avoid purchasing gold unnecessarily. An appeal had been made to consider alternative options to conserve foreign exchange reserves, as the country's import bill was rising due to increasing crude oil prices. The WGC noted that this appeal has also had some impact on demand.
Forecast for 2026
The WGC has projected that India's gold demand for the full year 2026 will range between 650 and 750 tonnes. Given the current geopolitical situation, interest rates, and inflation, demand is likely to remain at a moderate level. However, if prices drop and import duties are reduced, demand could exceed 750 tonnes.
Other Statistics
The volume of recycled gold fell by 17% to 19.2 tonnes.
Gold imports declined by 23% to 98.1 tonnes.
The average price of gold in the global market stood at $4,506.3 per ounce.
In India, the average price of gold (excluding import duty and GST) was ?1,50,744.8 per 10 grams.
According to WGC projections, demand is likely to pick up again in the second half of the year due to festivals like Ganeshotsav and Diwali, as well as the wedding season.
Delhi: India's gold demand fell by 6% year-on-year to 131.4 tonnes during the April-June quarter of the current financial year. In the same period last year, demand stood at 139.7 tonnes. According to a World Gold Council (WGC) report, adverse weather conditions, a hike in customs duty, and Prime Minister Narendra Modi's appeal to avoid unnecessary gold purchases were the primary reasons for this decline.
**Record Transaction Value**
Although demand volume decreased, the period set a record in terms of value. Total gold transactions reached ?1,98,100 crore in the April-June quarter, up from ?1,32,500 crore in the previous year—marking an increase of approximately 50% in transaction value over the year. Sachin Jain, Regional CEO of WGC, noted that despite gold prices hovering at record highs, consumers continue to prioritize gold as a safe investment option.
**Jewelry Demand Drops 15%**
Demand for jewelry fell by 15% to 75.1 tonnes, down from 88.8 tonnes the previous year. Sales were impacted by rising prices and the off-season period.
**Rise in Investment via Gold Bars and Coins**
Conversely, demand for gold as an investment increased. Demand for gold bars and coins rose by 9% to 50.3 tonnes. Even as investments in gold ETFs declined globally, Indian gold ETFs saw a net inflow of 4.2 tonnes.
**Mention of Modi's Appeal**
In May, Prime Minister Modi had urged citizens to avoid purchasing gold unnecessarily. An appeal had been made to consider alternative options to conserve foreign exchange reserves, as the country's import bill was rising due to increasing crude oil prices. The WGC noted that this appeal has also had some impact on demand.
Forecast for 2026
The WGC has projected that India's gold demand for the full year 2026 will range between 650 and 750 tonnes. Given the current geopolitical situation, interest rates, and inflation, demand is likely to remain at a moderate level. However, if prices drop and import duties are reduced, demand could exceed 750 tonnes.
Other Statistics
The volume of recycled gold fell by 17% to 19.2 tonnes.
Gold imports declined by 23% to 98.1 tonnes.
The average price of gold in the global market stood at $4,506.3 per ounce.
In India, the average price of gold (excluding import duty and GST) was ?1,50,744.8 per 10 grams.
According to WGC projections, demand is likely to pick up again in the second half of the year due to festivals like Ganeshotsav and Diwali, as well as the wedding season.
**Record Transaction Value**
Although demand volume decreased, the period set a record in terms of value. Total gold transactions reached ?1,98,100 crore in the April-June quarter, up from ?1,32,500 crore in the previous year—marking an increase of approximately 50% in transaction value over the year. Sachin Jain, Regional CEO of WGC, noted that despite gold prices hovering at record highs, consumers continue to prioritize gold as a safe investment option.
**Jewelry Demand Drops 15%**
Demand for jewelry fell by 15% to 75.1 tonnes, down from 88.8 tonnes the previous year. Sales were impacted by rising prices and the off-season period.
**Rise in Investment via Gold Bars and Coins**
Conversely, demand for gold as an investment increased. Demand for gold bars and coins rose by 9% to 50.3 tonnes. Even as investments in gold ETFs declined globally, Indian gold ETFs saw a net inflow of 4.2 tonnes.
**Mention of Modi's Appeal**
In May, Prime Minister Modi had urged citizens to avoid purchasing gold unnecessarily. An appeal had been made to consider alternative options to conserve foreign exchange reserves, as the country's import bill was rising due to increasing crude oil prices. The WGC noted that this appeal has also had some impact on demand.
Forecast for 2026
The WGC has projected that India's gold demand for the full year 2026 will range between 650 and 750 tonnes. Given the current geopolitical situation, interest rates, and inflation, demand is likely to remain at a moderate level. However, if prices drop and import duties are reduced, demand could exceed 750 tonnes.
Other Statistics
The volume of recycled gold fell by 17% to 19.2 tonnes.
Gold imports declined by 23% to 98.1 tonnes.
The average price of gold in the global market stood at $4,506.3 per ounce.
In India, the average price of gold (excluding import duty and GST) was ?1,50,744.8 per 10 grams.
According to WGC projections, demand is likely to pick up again in the second half of the year due to festivals like Ganeshotsav and Diwali, as well as the wedding season.
