NewsSignals AI analysis·Reuters·Nov 3, 2026

India's 2026 gold demand seen falling to six-year low on price rise

Grade Bbearish AI signal$XAU

India's gold demand is forecast to fall to around 650 metric tons in 2026, its lowest level in six years, as elevated prices and weakening rural incomes suppress purchases. Gold demand dropped 29% year-on-year to 162.5 metric tons in the September quarter, with jewellery demand falling 20% and investment demand declining 40%. Despite potential seasonal support from Diwali and the wedding season, high prices and weak agricultural incomes could continue pressuring India's gold demand and imports.

Bullish strength: 35/100

Diwali and the wedding season could support gold purchases in the December quarter.

Bearish strength: 65/100

Full-year 2026 gold demand is forecast at around 650 metric tons, the lowest since 2020.
September-quarter gold demand declined 29% year-on-year.
Jewellery demand fell 20% and investment demand dropped 40%.
Elevated gold prices and weak rural incomes are likely to constrain purchases.
The 2026 monsoon delivered its lowest rainfall in more than a decade, reducing agricultural production and farmers' incomes.

This is automated NewsSignals analysis of third-party reporting, not independent original reporting or investment advice. AI scores are not price predictions.

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