In worth phrases, complete demand nearly doubled to a report ₹2,27,530 crore from ₹1,14,600 crore in the identical interval final yr.
A serious pattern throughout this era was the sharp shift in shopping for patterns. Funding demand — together with bars, cash and exchange-traded funds (ETFs) — surged 54 per cent to 82 tonnes, overtaking jewelry demand for the primary time in WGC’s data since 2000. Funding accounted for 55 per cent of complete demand, whereas jewelry’s share dropped to 44 per cent, its lowest on report.
Jewelry demand weakens as costs soar
Jewelry demand throughout this era fell 19 per cent year-on-year to 66.1 tonnes from 82 tonnes between January and March 2025, as report costs lowered affordability, significantly for budget-conscious patrons. Nonetheless, larger costs pushed the worth of jewelry purchases up 47 per cent to ₹99,900 crore.
In line with the WGC, jewelry volumes have been among the many weakest in over 20 years, largely attributable to an 81 per cent year-on-year rise in home gold costs. Wedding ceremony purchases and shopping for by prosperous shoppers continued to assist the phase, whereas many patrons shifted to lighter, lower-carat and studded jewelry.
Trade of previous gold remained a vital a part of the market, contributing 40-60 per cent of transactions throughout retailers. Listed jewellers posted income progress of 32-124 per cent throughout this era, supported by larger ticket sizes and powerful coin gross sales.
India retained its place because the world’s second-largest jewelry market after China, accounting for 22 per cent of worldwide jewelry demand, the World Gold Council mentioned.
Funding demand surges
Demand for bars and cash rose 34 per cent to 62.3 tonnes, whereas worth surged 142 per cent to ₹94,100 crore.
Bars and cash almost matched jewelry demand, signalling a notable shift in India’s historically jewellery-led gold market. Their share in home demand rose to 41 per cent, the very best in WGC’s historic dataset.
Gold ETFs additionally posted report progress. ETF demand reached an all-time excessive of 19.9 tonnes, almost tripling from 6.7 tonnes a yr in the past. In worth phrases, ETF investments soared 437 per cent to ₹30,000 crore.
Practically 80 per cent of ETF inflows got here in January, as buyers rushed to gold amid robust worth momentum. Though redemptions elevated later within the January-March interval attributable to profit-booking, shopping for resumed throughout worth dips. ETF holdings reached 115 tonnes by the top of March, whereas belongings beneath administration rose to ₹1.7 trillion.
Report costs alter market dynamics
Home gold costs averaged ₹1,51,105 per 10 grams between January and March 2026, sharply larger than ₹83,375 a yr earlier. Worldwide gold costs averaged $4,873 per ounce, in contrast with $2,860 throughout the identical interval in 2025.
MCX spot gold costs rose 20 per cent sequentially and 81 per cent year-on-year, hitting report highs earlier than correcting by about 15 per cent.
“India’s gold market in 2026 displays a continued divergence between quantity traits and worth progress, formed by record-high costs and evolving client preferences,” mentioned Sachin Jain, regional chief govt officer, India, World Gold Council.
Imports, recycling and gold-backed loans improve
India’s gold imports rose considerably to 186 tonnes between January and March 2026, pushed by robust funding demand early within the yr. Recycled gold provide additionally elevated 20 per cent year-on-year to 31.2 tonnes.
Regardless of larger recycling, many shoppers selected to monetise moderately than totally liquidate their holdings, limiting scrap provide progress.
Gold-backed borrowing remained strong as effectively, with excellent retail loans towards pledged jewelry rising 124 per cent year-on-year to ₹4.3 trillion by end-February.
International demand additionally stays robust
Worldwide, complete gold demand rose 2 per cent year-on-year to 1,231 tonnes between January and March 2026, whereas demand worth surged 74 per cent to a report $193 billion.
Central banks remained lively patrons, including 244 tonnes, whereas know-how demand edged up 1 per cent, supported by rising AI infrastructure necessities.
Outlook for India gold demand
The WGC expects India’s funding demand to stay resilient, supported by geopolitical uncertainty, worth momentum and gold’s safe-haven attraction. Nonetheless, elevated costs, inflation and monsoon-related dangers might proceed to strain jewelry demand, particularly in rural and price-sensitive markets.
“Wanting forward, whereas elevated costs might act as a near-term headwind for jewelry demand, the summer season wedding ceremony season and regional festivals are anticipated to supply assist, constructing on the momentum seen throughout Akshaya Tritiya,” Jain mentioned.
He added that gold would probably proceed to draw buyers as a portfolio diversifier amid world uncertainty, with full-year demand projected at 650-750 tonnes.
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