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\n\nIndia's gold demand is expected to decline to a six-year low in 2026 as record-high prices weigh on consumer purchases, particularly jewellery, according to the World Gold Council (WGC). The surge in gold prices has prompted buyers to defer purchases, reduce the quantity of gold bought or shift towards lighter jewellery, putting pressure on overall consumption in one of the world's largest gold markets.
\n\nJewellery demand fell in the first nine months of the year, which will drag down total demand to around 650 metric tons, the lowest since 2020 when the COVID-19 pandemic forced jewellery shops to close, Sachin Jain, chief executive of the WGC's Indian operations, told Reuters.
\n\nGold demand fell 29% year-on-year to 162.5 metric tons in the September quarter, as jewellery purchases declined 20% and investment demand dropped 40%, Jain said.
\n\nDemand is likely to improve in the December quarter as key festivals such as Diwali and the wedding season drive purchases, he said.
\n\nHigh prices and weakness in the rural economy following a poor monsoon are likely to cap demand, WGC said in a report. More than half of India's gold demand comes from rural areas where jewellery is a traditional store…
Original source: https://www.timesnownews.com/business-economy
