New Delhi, Aug 19: India’s gold market is showing encouraging signs of recovery, with jewellery purchases picking up and retailers beginning to rebuild inventories ahead of the upcoming festive season, according to the World Gold Council.
Recent market trends indicate that consumers have started returning to jewellery stores after a period of cautious buying. More stable gold prices and the correction seen earlier have encouraged some buyers to bring forward purchases that had previously been postponed.
The improvement is particularly significant ahead of India’s festive and wedding season, traditionally one of the strongest periods for gold consumption. Retailers and manufacturers are already seeing stronger order flows, while inventory replenishment suggests that businesses are preparing for increased customer demand in the months ahead.
Investment demand is also providing support to the market. Gold exchange-traded funds continue to attract investor interest, while demand for bars and coins remains firm. This indicates that gold is retaining its appeal not only as jewellery but also as a long-term investment and store of value.
India’s gold market had faced some pressure earlier in 2026 as elevated prices affected jewellery volumes. World Gold Council data showed that Indian gold demand in the April-June quarter stood at 131 tonnes, down from a year earlier. However, the value of demand reached a record ₹1.98 lakh crore, reflecting the impact of higher gold prices. Jewellery demand also improved sequentially during the quarter.
The recent recovery suggests that consumer sentiment is gradually improving. Exchange of old gold for new jewellery has remained an important part of the market, helping households manage purchases despite relatively high prices.
Gold prices have also regained momentum after stabilising in July. International gold prices rose about 9 per cent during the first two weeks of August, while domestic prices increased by nearly 7 per cent, according to the World Gold Council.
Despite higher prices, the festive season could provide an important boost to physical demand. Indian consumers traditionally associate gold purchases with festivals, weddings and important family occasions, making seasonal sentiment a significant factor in the jewellery market.
For retailers, the improving demand outlook offers an opportunity to prepare for a stronger sales period. Better inventory planning, attractive designs and flexible purchasing options could help businesses respond to changing consumer preferences.
The broader trend also reflects the evolving role of gold in Indian households. Alongside its cultural importance, the precious metal is increasingly viewed as a financial asset that can provide diversification and long-term security.
With jewellery demand recovering, investment interest remaining supportive and retailers preparing for the festive season, India’s gold market appears to be entering the second half of the year with renewed momentum.