2026 May See 6-Year Low Demand; Unofficial Imports Up Multi-Fold In Sept Qtr
In the global gold market, however, demand remained flat at 1,369 tonnes. Central banks and other official institutions added a net 321 tonnes to reserves in Q3, up 42% year-on-year and the highest quarterly total since Q4 2024.
Chennai: The World Gold Council has lowered India’s 2026 annual gold demand to 625 and 675 tonnes, which could be a six-year low, after 446 tonnes in the pandemic year of 2020. In the September quarter, the gold demand was 29% down, while unofficial imports surged multi-fold to 50 tonnes.
Demand for gold in India for the quarter was 162.5 tonnes, down by 29% compared to 229.8 tonnes in the year ago quarter. The cumulative demand in the first three quarters of the year stood at 443.9 tonnes against 506.3 tonnes in the same period last year.
With one more quarter left in 2026, WGC has lowered its annual gold demand estimate to 625 – 675 tonnes. This could be the lowest demand in 16 years, if the pandemic year of 2020 is taken as an aberration. In the past couple of decades 700-750 tonnes have remained as the normal demand. In 2016, it fell to 666 tonnes and 690 tonnes in 2019. The lowest was 446 tonnes in 2020, when the pandemic had brought sales to a standstill.
According to WGC, customers are still watching the falling gold prices before making purchases. From the record high levels in January, prices have been sliding and are down around 24%. Customer sentiment was also evident from the recycled gold volumes which were down 12%.
The increase in gold import duties too dampened the demand. While the official bullion imports, including doré, fell 70% to 64 tonnes, net bullion imports stood at 114 tonnes with 50 tonnes coming through unofficial channels against 3 tonnes in the same quarter last year. The hike in import duties from 6% to 15% saw the highest unofficial imports since 2023.
However, the festive demand has already picked up, as anecdotal evidence shows. The fourth quarter demand must be over 250 tonnes to touch 700 tonne-mark. Hence, WGC has lowered the annual demand estimate.
Gold jewellery demand was 20% down in the quarter, bar and coin 40% and gold ETF demand 50%.
In the global gold market, however, demand remained flat at 1,369 tonnes. Central banks and other official institutions added a net 321 tonnes to reserves in Q3, up 42% year-on-year and the highest quarterly total since Q4 2024. Their year-to-date purchases of 675 tonnes are now 6% higher than in the same period last year. Gold ETFs returned to inflows in a marked reversal from Q2, adding 211 tonnes in Q3.
