India's gold demand drops as spending hits record high in 2026

India gold demand World Gold Council gold spending MCX gold price Federal Reserve rate outlook

A World Gold Council report showed that India's gold demand fell 6 % in the April‑June 2026 quarter, slipping to 131.4 tonnes from the previous year, while total spending on gold rose sharply to about ₹1.98 lakh crore – roughly ₹65,000 crore more than the same period a year earlier. The increase was driven by higher prices that prompted consumers to shift toward lighter jewellery, bars and coins, and by a surge in gold‑ETF holdings. Prime Minister Narendra Modi had earlier asked citizens to refrain from buying gold for a year to protect foreign‑exchange reserves amid West‑Asia tensions and oil‑price spikes.

Domestic market data on July 30‑31 indicated that gold prices in major Indian cities were largely range‑bound, with 24‑carat gold trading around ₹1,44,300‑₹1,44,500 per 10 g. On the Multi‑Commodity Exchange (MCX), gold futures fell 0.57 % to ₹1,42,413 on July 31, reflecting profit‑booking and a stronger US dollar. The Federal Reserve's pause on rate hikes, with a 63 % probability of a September increase noted by CME FedWatch, together with global bullion trading around $4,060‑$4,120 per ounce, influenced market sentiment. Investment demand remained robust, as gold‑ETF assets rose 49 % to 4.2 tonnes and central banks continued buying large quantities of gold worldwide.

Entities

Federal Reserve · Gold · Louis Street · Multi Commodity Exchange (MCX) · Multi‑Commodity Exchange (MCX) · Narendra Modi · Sensex · World Gold Council · silver

Claims

What the coverage asserts, and how many sources carry each claim.

[○ 1 SOURCE] Gold‑ETF assets in India rose 49 % to 4.2 tonnes during the quarter, reflecting stronger investment demand. www.chinimandi.com
[● 2 SOURCES] India's gold demand fell 6 % in the April‑June 2026 quarter to 131.4 tonnes. www.aajtak.in · www.chinimandi.com
[○ 1 SOURCE] Prime Minister Narendra Modi asked citizens to avoid buying gold for a year on 10 May 2026 to protect forex reserves amid West‑Asia tensions and oil‑price spikes. www.aajtak.in
[● 2 SOURCES] Total spending on gold in India during the same quarter reached approximately ₹1.98 lakh crore, about ₹65,000 crore more than a year earlier. www.aajtak.in · www.chinimandi.com
[○ 1 SOURCE] The CME FedWatch tool indicated a 63 % probability of a US Federal Reserve rate hike in September 2026. www.analyticsinsight.net
[● 2 SOURCES] Global gold prices were trading around $4,060‑$4,120 per ounce, with support near $4,000. www.analyticsinsight.net · www.tradingview.com
[● 3 SOURCES] Gold prices in major Indian cities on 30 July 2026 were largely stable, with 24‑carat gold around ₹1,44,300‑₹1,44,500 per 10 g. hindi.latestly.com · www.khabarfast.com · www.ibc24.in
[○ 1 SOURCE] MCX gold futures fell 0.57 % to ₹1,42,413 on 31 July 2026 amid profit‑booking and a stronger US dollar. www.analyticsinsight.net