India’s gold demand is likely to fall in 2026 to its lowest level in six years, according to the World Gold Council. High prices have reduced purchases of gold for both jewellery and investment across the country.
The Council said several factors have dampened demand, including the steep rise in prices, an increase in import duty, and the Prime Minister’s appeal to people to restrict gold purchases.
Demand is expected to rise somewhat in the October-December quarter because of the Deepavali and wedding seasons. However, experts say that if prices keep climbing, buyers may turn to lighter-weight jewellery or exchange old gold for new ornaments.
Speaking on how commodity traders should approach gold, Gnanasekaran, Director of Comtrends, said the price of 10 grams of gold could slip from the current Rs 1,38,000 to between Rs 1,30,000 and Rs 1,25,000.
He noted that fluctuations in the dollar’s value and a decline in AI-linked stocks could have a negative effect on gold prices, making a continued downward trend more likely overall. He added that prices could shift depending on the outcome of the US Senate elections, so traders should wait for the results before deciding their next move.
