India’s gold demand in the April-June quarter decreased by 6% year-on-year to 131.4 tonnes, down from 139.7 tonnes in the same period last year, according to the World Gold Council (WGC). The key reasons for this decline are higher customs duty and PM Narendra Modi’s appeal to cut gold purchases. The government increased the import duty of gold and silver from 6% to 15% in May this year, leading to higher prices. Gold worth 50% more was purchased by value Sachin Jain, regional CEO of WGC India, stated that although demand has decreased in quantity, it hit a record value. Gold consumption in the first quarter was ₹1,98,100 crore, up from ₹1,32,500 crore in Q2 of 2025, showing that consumers are buying gold despite higher prices. 15% decrease in jewelry demand During the April-June quarter, jewelry demand in India decreased by 15% to 75.1 tonnes, compared to 88.8 tonnes in the same period last year. Prime Minister Modi had appealed to people in May to reduce non-essential gold purchases and save foreign exchange reserves, which has had an impact on the market. Investment Accelerated Prices and Future Outlook In the second quarter, the average international price of gold was $4,506.3 per ounce, which was $3,280.4 in 2025. In India, the average quarterly price (excluding import duty and GST) was ₹1,50,744.8, compared to ₹94,875.9 last year. WGC has estimated the total demand this year to be between 650 and 750 tonnes. According to Jain, demand is expected to increase during the festive and wedding seasons. No Impact on Global Demand According to the report, global gold demand remained at 1,269 tonnes in the April-June quarter. There has been no significant change compared to last year. During the same quarter of 2025, the total demand for gold was 1,268.6 tonnes. Post navigation Take a loan against FD when you need money:You will get a loan at low interest, and won’t have to break your FD Patanjali Group to buy Magma General Insurance:Gets IRDAI nod for ₹4,500 Cr deal to be completed in 3 months
