Mumbai

India’s gold demand increased 10 per cent year-on-year to 151 tonnes in the January-March quarter of 2026, led by a strong jump in investment buying as prices of the precious metal surged, according to a report by World Gold Council on Wednesday.

The report said investment demand through bars, coins and ETFs rose 54 per cent to 82 tonnes during the quarter, overtaking jewellery consumption. This reflected a broader structural shift in the market, with more buyers turning to gold as an investment asset amid economic uncertainty and rising prices.

In contrast, jewellery demand fell 19 per cent to 66 tonnes from a year earlier, as record-high prices and affordability pressures reduced purchases, especially in price-sensitive categories.

In value terms, overall gold demand nearly doubled, rising 99 per cent year-on-year to Rs 2,27,500 crore (around USD 25 billion), driven largely by the sharp increase in prices.

According to the WGC, domestic gold prices averaged Rs 1,51,108 per 10 grams during the quarter, up 81 per cent from Rs 83,375 in the same period last year.

Demand for bars and coins alone climbed 34 per cent to 62 tonnes, the highest first-quarter level since 2013. Their share in India’s total domestic gold demand rose to 41 per cent, the highest since records began in 2000. India also accounted for 13 per cent of global bar and coin demand.

The first quarter was also a record period for Indian gold exchange-traded funds, which saw net inflows of 20 tonnes as investors responded to elevated gold prices and relatively weak domestic financial markets.

WGC Regional CEO for India Sachin Jain said that while high prices may continue to weigh on jewellery sales in the near term, the summer wedding season and festivals such as Akshaya Tritiya are expected to provide support.

For the full year, the council estimates India’s gold demand in the range of 650 to 750 tonnes, compared with 712 tonnes in 2025.

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On the supply side, recycled gold rose 20 per cent to 31.2 tonnes as some consumers booked profits at higher prices. Gold imports into India during the quarter increased 39 per cent to 186 tonnes.