The festive week has begun in India. Today i.e. 3rd November, the price of gold has decreased by more than 1500 rupees. The main reason for this decline is the fall in demand for gold. Yes, a report by the World Gold Council has come out. Which has shocked everyone. High gold prices in India have pushed demand to a 6-year low. Due to which the price has decreased. Its effect is likely to be seen more in the coming days. It means that the price of gold may fall further. Let us also tell you what kind of information has been given about the demand for gold in the report of the World Gold Council.
Demand for gold has fallen
Gold demand in India may fall to a six-year low in 2026, the World Gold Council (WGC) said on Tuesday. This is because high gold prices are affecting jewelery sales and the demand for gold for investment has also decreased. India, the world’s second-largest gold consumer after China, is grappling with rising inflation due to the Iran war. At the same time, due to weak monsoon, demand for jewelery in rural areas may decrease. Sachin Jain, chief executive of WGC’s India operations, told Reuters that demand for jewelery had declined in the first nine months of the year. Due to this, total demand is likely to decline to around 650 MT, the lowest level since 2020. In 2020, jewelery shops had to close down due to the Covid-19 pandemic.
20 percent decline in jewelery sales
Jain said gold demand fell 29 per cent to 162.5 metric tonnes in the September quarter compared to last year. In which there has been a 20 percent decrease in the purchase of jewelery and a 40 percent decrease in investment demand. He said demand is expected to improve in the December quarter as people buy gold due to major festivals like Diwali and the wedding season. The country celebrated Dussehra in October and will celebrate Diwali in early November, during which buying gold is considered auspicious. According to a WGC report released on Tuesday, high gold prices and poor monsoons have dampened the rural economy, which may limit demand for gold.
Income in rural areas has declined
More than half of India’s gold demand comes from rural areas, where jewelery is a traditional means of wealth accumulation for millions. The 2026 monsoon saw the lowest rainfall in more than a decade, affecting agricultural production and reducing farmers’ incomes. Jain said that India’s gold imports have declined in the September quarter. One reason is that gold arrivals have increased informally (without official records) after the government increased import duty on gold earlier this year.
