Image Source: WOWNEWS24X7
The World Gold Council projects India’s gold consumption in 2026 to range between 600–700 tonnes, lower than earlier expectations. Record-high prices have dampened jewellery demand, though investment demand remains resilient. The Council highlights inflationary pressures, shifting consumer preferences, and global market volatility as key factors shaping India’s gold outlook.
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India’s glittering love affair with gold may face moderation in 2026, according to the World Gold Council (WGC). The Council estimates that total consumption will settle between 600 and 700 tonnes, reflecting the impact of record-high bullion prices on jewellery demand.
Key highlights:
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Price pressures: Gold prices surged to historic highs in late 2025, making jewellery less affordable for households, especially during weddings and festivals.
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Jewellery demand slowdown: Traditional buyers are cutting back, with retailers reporting softer footfalls and smaller ticket sizes.
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Investment resilience: Despite weaker jewellery demand, investment in gold bars, coins, and ETFs remains steady, as consumers view gold as a hedge against inflation and currency volatility.
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Global context: International market volatility and strong central bank purchases have kept gold elevated, further influencing domestic consumption patterns.
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Long-term outlook: WGC notes that India’s cultural affinity for gold remains intact, but consumption is increasingly shaped by affordability and investment trends rather than pure ornamentation.
The projection underscores a shift in India’s gold market dynamics, where rising prices are reshaping consumer behavior while reinforcing gold’s role as a safe-haven asset.
Sources: World Gold Council, Economic Times, Business Standard
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