WGC Report: India’s gold market displayed mixed performance during June and early July, according to the latest World Gold Council (WGC) market update. While gold prices declined sharply and imports weakened, lower prices encouraged renewed jewellery purchases, stronger ETF inflows, and increased interest in digital gold investments.
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The report suggests that although overall demand remains below peak levels, consumers and investors have started taking advantage of the recent correction in gold prices, helping stabilize the domestic market.
Gold Prices Declined Before Recovering Slightly
International and domestic gold prices witnessed a significant correction during June. Global gold prices fell to nearly 4,000 Dollars per ounce, marking their lowest level in several months, while domestic prices slipped to around 141,000 Rupees per 10 grams, a six-month low.
Despite the correction, Indian gold prices have continued to outperform international markets on a year-to-date basis. The World Gold Council attributes this resilience largely to the increase in India’s gold import duty and the depreciation of the Indian Rupee against the U.S. Dollar.
Market analysts note that stronger expectations of higher U.S. interest rates, a firmer Dollar, and increased investor preference for equities contributed to the weakness in international gold prices.
Domestic Gold Discounts Continue to Narrow
The report highlights that gold discounts in India’s domestic market have reduced considerably from the unusually high levels recorded following the import duty hike earlier this year.
Although discounts widened modestly again during mid-July, they remain far below previous peaks, indicating that the domestic market is gradually returning to normal trading conditions.
The availability of recycled gold through jewellery exchange programs has helped maintain sufficient supply across the market.
Jewellery Demand Shows Signs of Recovery
Following a relatively weak period between mid-May and mid-June, consumer demand for gold jewellery has started improving.
Retailers reported that lower gold prices, stable market conditions, attractive promotional offers, exchange schemes, and flexible payment options have encouraged customers to resume purchases.
Apart from wedding-related demand, jewellers have also started receiving advance orders from retailers preparing for the upcoming festive season beginning in August.
Old Gold Exchange Continues to Grow
One of the strongest trends identified by the World Gold Council is the increasing popularity of exchanging old jewellery for new purchases.
Following the import duty increase, many retailers reported a noticeable rise in exchange transactions. In several cases, exchanged jewellery now represents a substantial share of total jewellery sales, helping improve domestic gold availability while reducing the need for fresh imports.
Listed Jewellery Retailers Report Strong Quarterly Growth
Leading listed jewellery companies delivered healthy business performance during the April–June quarter.
Many retailers reported strong year-on-year revenue growth, supported by seasonal festivals, Akshaya Tritiya demand, and the summer wedding season.
Growth was driven by higher customer footfall, larger average purchase values, and continued expansion of retail store networks across India, reflecting confidence in long-term jewellery demand.
Gold ETF Investments Rebound Strongly
Indian investors increased allocations to gold exchange-traded funds (ETFs) during June despite global ETF outflows.
The World Gold Council reported that June recorded the strongest monthly ETF inflows since February, as investors viewed lower gold prices as an attractive buying opportunity.
Investor participation also expanded significantly, with a large number of new investment accounts added during the month.
Digital Gold Demand Remains Resilient
The report also highlighted renewed strength in digital gold investments.
Purchases made through UPI-based digital gold platforms increased during June, with both transaction values and estimated buying volumes reaching their highest levels in three months.
This suggests that investors continue to use digital platforms as a convenient method of accumulating gold during periods of price weakness.
Gold Imports Fall to One-Year Low
India’s gold imports declined for the second consecutive month during June, reaching their lowest level in nearly a year.
According to the report, softer consumer demand, adequate inventories within the supply chain, and increased availability of recycled gold reduced the requirement for fresh imports.
Even though import volumes declined, the overall value of imports remained higher than a year earlier because of elevated average gold prices.
FAQ’s
1. What are the key highlights of the World Gold Council’s latest India Gold Market Update?
The report highlights improving jewellery demand, record ETF inflows since February, stronger digital gold purchases, lower gold imports, and rising old-gold exchange activity. Despite softer overall demand, lower prices encouraged both consumers and investors to increase their exposure to gold.
2. Why did jewellery demand improve even though the gold market remained mixed?
Lower gold prices made jewellery purchases more attractive for consumers. Retail promotional campaigns, exchange offers, flexible payment options, wedding demand, and advance festive-season buying also helped revive jewellery sales after a relatively weak period.
3. Why have India’s gold imports declined in recent months?
Gold imports fell because domestic demand softened, supply-chain inventories remained sufficient, and recycled gold from exchange programs became increasingly available. This reduced the need for jewellers and traders to import additional bullion despite stable consumer interest.
4. How did Indian gold ETFs perform during June 2026?
Indian Gold ETFs recorded their strongest monthly inflows since February as investors viewed the price correction as an attractive buying opportunity. Investor participation also increased significantly, with thousands of new investment accounts being added during the month.
5. What does the World Gold Council expect for India’s gold market going forward?
The World Gold Council believes jewellery demand could continue improving ahead of the festive and wedding seasons, while ETF investments and digital gold purchases may remain supported if gold prices stay relatively stable. However, global interest rates, currency movements, and international gold prices will continue to influence market sentiment.
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