India’s gold jewellery demand fell 19% year-on-year to 66.1 tonnes in Q1 2026, as record-high prices weighed on affordability across segments. This marks one of the weakest first-quarter volumes in recent decades.
Despite the drop in volumes, the value of jewellery demand rose 47% to ₹99,920 crore, driven by sharply higher gold prices and steady wedding-led purchases. Consumers adjusted buying behaviour, shifting towards lighter, lower-karat and studded jewellery to manage costs.
In contrast, investment demand strengthened sharply, highlighting a shift in consumption patterns. Total investment demand rose to 82 tonnes in Q1, up over 50% year-on-year, with bar and coin demand at 62.3 tonnes (+34%) and gold ETFs at 19.9 tonnes, a record high. In value terms, bar and coin demand surged 142% to ₹94,130 crore, while ETF demand jumped 437% to ₹30,000 crore.
A significant share of purchases was supported by exchange of old gold, accounting for roughly 40-60% of retail transactions, helping sustain demand despite price pressures. At the premium end, higher-income buyers continued to favour heavier pieces, cushioning the overall decline.
Sachin Jain, Regional CEO, India, World Gold Council, said, “Jewellery demand faced notable headwinds during the quarter, declining 19% year-on-year to 66.1 tonnes, as elevated prices and affordability constraints continued to weigh on consumption, particularly in price-sensitive segments. However, the value of jewellery demand remained resilient… reflecting a gradual shift towards lighter and more value-conscious purchases.”
Retail performance remained strong. Leading jewellers reported revenue growth of 32% to 124% year-on-year, driven by higher ticket sizes and increased traction in plain gold jewellery and coin sales. Store expansion also continued, with retailers adding new outlets even amid supply disruptions.
However, jewellery’s share in total gold demand dropped to 44%, overtaken by investment demand, signalling a clear shift in consumption trends.