Now Reading: Gold demand hits six-year low, prices drop Rs 1,500
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Gold demand hits six-year low, prices drop Rs 1,500
The Story in Brief
Gold prices in India fell more than Rs 1,500 on Tuesday, 3 November, as the World Gold Council projected 2026 demand would hit a six-year low. The WGC said total demand is likely to fall to about 650 metric tonnes, the lowest since 2020, when the pandemic shut jewellery stores.
In the September quarter, gold demand dropped 29 per cent year-on-year to 162.5 metric tonnes. Jewellery purchases fell 20 per cent and investment demand 40 per cent. WGC India CEO Sachin Jain attributed the slump to high prices, weak monsoon rains hitting rural incomes, and a government import duty hike earlier in 2026. Rural areas account for over half of India's gold buying. He expects demand to improve in the December quarter due to the festive and wedding season.
Indian Opinion Analysis
The World Gold Council's projection of a six-year low in demand at about 650 metric tonnes signals a sustained price correction has arrived after a prolonged bull run. The 20 per cent drop in jewellery purchases and a sharper 40 per cent fall in investment demand during the September quarter show that both retail consumption and speculative buying have been hit by the price shock. Rural demand, which accounts for over half of India's gold consumption, faces a double blow: a weak monsoon that cut farm incomes and higher import duties imposed earlier in 2026 that have pushed unofficial imports higher and squeezed official volumes. The data leaves an open question: whether the festive season's traditional buying patterns can revive demand enough to stop prices sliding further, or whether the supply side, through higher imports or a policy move on duty, will determine the floor.
Source: tv9hindi.com
This brief was synthesised by AI from the source linked above. Methodology and corrections.
