Indian jewellery demand fell 15% to 75 tonnes in June Quarter

Demand for Indian jewellery fell 15% YoY to 75 tonnes, while global demand also took a hit, falling to its worst in the second quarter since the Covid pandemic, as per a report from the World Gold Council (WGC).The Indian demand for jewellery amounted to 75 tonnes in Q2, while global demand was at 278 tonnes.While demand for the 2nd quarter fell in India, it saw an increase of 14% Q-o-Q from a weak Q1. The H1 demand was down 17% Y-o-Y at 141 tonnes, whereas the demand value rose 26% Y-o-Y to $21 billion.Gold as of 3:18 PM traded at 1,42,485 per 10 grams. The global demand for gold remained flat Y-o-Y at 1,269 tonnes in the April-June quarter, according to the report.Prices of the precious metal moderated from the record highs touched earlier this year, the Council said in its report. The total demand for the yellow metal was at 1,268.6 tonnes during the corresponding quarter of 2025, said the WGC in its 'Q2 2026 Gold Demand Trends' report.The demand in the first half of the year rose 2% Y-o-Y to an estimated 2,522 tonnes, worth $380 billion.Investment in gold ETFs (exchange-traded funds), bars and coins dropped to 262 tonnes in the second quarter as lower gold prices led to moderation in strong investment momentum witnessed earlier this year.The decline was primarily driven by 45 tonnes of outflows from gold-backed ETFs during the April-June period. However, the first-half ETF demand remained modestly positive at 18 tonnes.The bar and coin investment was relatively stable, down just 3% Y-o-Y during the quarter. The first-half demand was still observed as 21% higher than the corresponding period last year, supported by an exceptional first quarter.On the other hand, demand in the OTC (over-the-counter) market, helped by Asian investment, stood at 327 tonnes in the second quarter and 571 tonnes in the first half of the year.Central banks and other official institutions added a net 289 tonnes to the reserves during the April-June quarter, up 62% Y-o-Y, as buying picked up across several markets. These were led by countries such as Poland, China, and the Czech Republic, WGC Regional CEO, India Sachin Jain told PTI."The Reserve Bank of India added 200 kg during the April-June quarter," he added.The report further stated that high prices continued to weigh on jewellery demand in Q2, which fell 17% Y-o-Y as consumers bought less gold and shifted towards lighter products.As a result, first-half jewellery demand by volumes declined, but in terms of value, demand was resilient. It saw a rise of 22% Y-o-Y in H1 to a global total of $86 billion.According to the report, the total gold supply during the second quarter was unchanged Y-o-Y at 1,269 tonnes, as mine production and recycling diverged.Mine supply rose an estimated 2% Y-o-Y to 966 tonnes, supported by new production from Canada and Chile.At the same time, recycling declined 6% Y-o-Y despite the higher prices.WGC Senior Markets Analyst Louise Street told the council that gold's early-year rally reversed in the second quarter, with prices consolidating after a correction from record highs.But the market remained well-supported, reflecting gold's established role as a diversifier and store of value, she added."While gold ETF flows receded in step with prices, continued central bank buying and growth in OTC investment contributed to total gold demand edging 2% higher across the first half of the year," said Street in the executive commentary of the report.For the second half of 2026, she said that investment is likely to drive growth. However, the demand mix could shift."OTC activity and demand from Asian investors are expected to play an increasingly prominent role, while Western gold ETF interest may be more closely linked to real yields, US monetary policy expectations and the dollar. Central banks will remain as the significant buyers, albeit at a slightly slower pace than we've seen over the last four years," she stated.High prices will keep pressure on jewellery volumes, though consumers may continue to hold their jewellery. While selling will be less, the recycling of jewellery is showing little sign of increasing, she added.(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)- EndsPublished By: Radhika VermaPublished On: Jul 30, 2026 17:08 IST