India Gold price today: Gold falls, according to FXStreet data

India's gold demand is anticipated to reach a six-year low in 2026, according to the World Gold Council (WGC). Elevated prices have been impacting both jewellery sales and investment demand, leading to this downward trend. The country, which is the world's largest consumer of gold after China, is currently facing rising living costs due to the Iran war.

Additionally, a weak monsoon season may further dampen rural demand for jewellery. In the first nine months of the year, jewellery demand witnessed a decline, which will likely reduce the total demand for gold to approximately 650 metric tonnes, the lowest level since 2020 when the COVID-19 pandemic led to the closure of many jewellery shops.

Sachin Jain, chief executive of the WGC's Indian operations, revealed that gold demand fell by 29% year-on-year to 162.5 metric tonnes in the September quarter, with jewellery purchases declining 20% and investment demand dropping 40%. Demand is expected to recover in the December quarter, driven by key festivals such as Diwali and the wedding season, which encourage gold purchases.

However, high prices and the economic challenges in rural areas, exacerbated by a poor monsoon, are anticipated to limit demand. Over half of India's gold demand originates from rural regions, where jewellery serves as a traditional wealth storage for millions. The monsoon delivered its lowest rainfall in over a decade in 2026, negatively affecting agricultural production and farmers' incomes.

In the September quarter, India's gold imports decreased, partly due to a rise in unofficial inflows following the government's decision to increase import duties on the precious metal earlier this year.