India’s Q2 Gold Demand Falls 6%, Jewellery Consumption Drops 15% after PM Modi’s Plea in May: WGC Report

India’s gold demand slipped 6 percent year‑on‑year to 131.4 tonnes in the April‑June quarter of 2026, as weak seasonal buying, higher customs duties and a shift in consumer sentiment curbed purchases, according to the World Gold Council’s latest Q2 2026 Gold Demand Trends report.

The nation’s total gold demand stood at 131.4 tonnes for the period, down from 139.7 tonnes a year earlier, with jewellery consumption recording the sharpest drop.

Jewellery demand fell 15 percent YoY to 75.1 tonnes, compared with 88.8 tonnes in the same quarter of the previous year.

The decline followed a May appeal by Prime Minister Narendra Modi urging citizens to limit non‑essential gold buying and explore alternative savings options to ease pressure on foreign‑exchange reserves amid volatile crude‑oil prices.

“I would urge people not to purchase gold for weddings for a year,” PM Modi said in May, citing the ongoing global crisis linked to Middle‑East tensions.

Meanwhile, gold and silver prices slipped up to 1 percent on MCX on Thursday as traders booked profits ahead of the upcoming US Federal Reserve policy decision.

“Gold’s steady hold around the $4,080 level shows a market torn between a hawkish monetary stance and rising geopolitical risk in the Middle East, which adds uncertainty to the global economy,” an analyst remarked.

Although the US Fed maintained its rate to combat inflation and eased expectations of an immediate September hike, the safe‑haven allure of precious metals is likely to revive.

“Nonetheless, the Fed’s firm commitment to a 2 percent inflation target, with no tolerance for overshoot, creates a challenging short‑term backdrop for bullion,” a market expert noted.

“As the domestic festive season approaches followed by the Western holiday period, the RBI’s monetary policy next week, the US Fed’s September decision and subsequent developments both at home and abroad will be pivotal in shaping the trajectory of gold and, consequently, jewellery sales,” another expert added.