Global gold demand remained flat year-on-year at 1,269 tonnes [5] during the second quarter of 2026.
The stability of the global market masks significant volatility in regional retail sectors and a sharp increase in long-term pricing. As one of the world's largest consumers of gold, India's shifting demand patterns often signal broader trends in retail sentiment and the impact of fiscal policy on luxury goods.
According to the World Gold Council, India's gold demand fell six percent year-on-year to 131.4 tonnes [4] in the April–June quarter. Analysts said this decline was due to a combination of high gold prices and increased customs duties, which curbed retail purchases. A seasonal slowdown in India also contributed to the lower consumption figures [4].
Price fluctuations characterized the quarter. The LBMA (PM) gold price averaged U.S.$4,506.29 per ounce [1] in Q2 2026. While this figure represents a 37% increase compared to the average from Q2 2025 [3], it was eight percent lower than the record highs seen in the first quarter of the year [2].
Despite the dip in Indian retail activity, the global total remained resilient. Central banks continued to add gold to their reserves, offsetting the losses in consumer markets. This institutional buying helped maintain the total demand at 1,269 tonnes [5], a figure that matched the previous year's performance for the same period.
The contrast between institutional accumulation and retail hesitation highlights a diverging market. While central banks view the metal as a strategic reserve asset, individual consumers in key markets like India are becoming more sensitive to price thresholds and government levies.
“Global gold demand remained flat year-on-year at 1,269 tonnes”
The data indicates a decoupling between institutional and retail gold markets. While central bank demand provides a floor for global volume, the 6% drop in India suggests that retail gold has reached a price-sensitivity ceiling. The 37% increase in price over the previous year's second quarter is likely the primary driver for the retail slowdown, suggesting that further price surges may continue to suppress consumer demand in emerging markets.
