India's Q1 gold demand rises 10 pc to 151 tons investment demand tops jewellery consumption WGC

Mumbai, Apr 29 (PTI) India's gold demand witnessed a 10 per cent on-year rise to 151 tonnes during the January-March quarter of this year, driven by a sharp surge in investment demand amid a significant jump in prices of the yellow metal, the World Gold Council said in a report on Wednesday.
     According to the World Gold Council (WGC) report, there has been a more pronounced structural shift in the country's gold demand, with investment-led buying gaining momentum, which rose by 54 per cent across bars and coins and ETFs to 82 tonnes, offsetting weakness in jewellery demand.
     Jewellery demand faced notable headwinds during the quarter, declining 19 per cent year-on-year to 66 tonnes, as elevated prices and affordability constraints continued to weigh on consumption, particularly in price-sensitive segments.
     For the full year, demand for gold could stand between 650-750 tonnes, compared to 712 tonnes last year, as rising gold prices in recent months have outstripped consumer budgets.
     The country's total gold demand during the first quarter of 2025 stood at 137 tonnes, according to the WGC's Q1 2026 Gold Demand Trends report.
     In value terms, demand nearly doubled, surging 99 per cent year-on-year in the March quarter of 2026 to a record Rs 2,27,500 crore (USD 25 billion), the report added.
     "India's gold market in Q1 2026 reflects a continued divergence between volume trends and value growth, shaped by record-high prices and evolving consumer preferences.
     "Total gold demand for the quarter stood at 151 tonnes, marking a 10 per cent increase compared to Q1 2025. In value terms, demand nearly doubled to Rs 99,900 crores, up 99 per cent year-on-year, underscoring the impact of the sharp rise in gold prices," WGC Regional CEO, India, Sachin Jain told PTI.
     Domestic gold price (MCX spot gold price) rose 81 per cent year-over-year during the first quarter of 2026, reaching a record quarterly average of Rs 1,51,108 per 10 grams compared to Rs 83,375 during the same period last year.
     Bar and coin demand rose sharply, increasing 34 per cent year-on-year to 62 tonnes -- the highest first-quarter level since 2013. Value demand surged 142 per cent to Rs 94,100 crore, a departure from a market where jewellery has traditionally dominated.
     "Looking ahead, while elevated prices may act as a near-term headwind for jewellery demand, the summer wedding season and regional festivals are expected to provide support, building on the momentum seen during Akshaya Tritiya.
     "At the same time, investment demand is likely to remain resilient, with gold continuing to be viewed as a safe-haven asset and an important portfolio diversifier amid ongoing global uncertainties. We estimate full-year demand to be in the range of 650-750 tonnes," he added.
     This saw the share of bars and coins to rise to 41 per cent of total domestic gold demand, the highest level in data going back to 2000 and a significant increase from a year ago (34 per cent). Moreover, India accounted for 13 per cent of global bar and coin demand, with y-o-y growth outpacing most major markets, barring China, the report added.
     The first quarter of 2026 was a record quarter for Indian gold ETFs, with net demand of 20 tonnes, driven by strong investor participation amid elevated gold prices and subdued domestic financial markets.
     Total Jewellery demand during the quarter decreased by 19 per cent to 66 tonnes as compared to 82 tonnes in the same quarter of 2025, while in value it increased by 47 per cent to Rs 99,900 crore from Rs 68,100 crore recorded last year.
     "... The value of jewellery demand remained resilient at Rs 99,900 crores, reflecting the strong price environment and a gradual shift towards lighter and more value-conscious purchases," Jain stated.
     The WGC data further revealed that total gold recycled in India was 31.2 tonnes, up by 20 per cent compared to 26.0 tonnes in the same quarter of 2025. While the total gold imports in India during the quarter stood at 186 tonnes, up by 39 per cent compared to 141.2 tonnes in the same period of 2025.
     On the supply side, he said recycling activity also saw an uptick, rising 20 per cent to 31.2 tonnes, as higher prices encouraged partial profit-taking, although overall sentiment continues to favour holding gold as a long-term store of value.

(This story has not been edited by THE WEEK and is auto-generated from PTI)