Gold Market Shifts: Surge in Investment Amid Jewellery Consumption Decline
Global gold jewellery consumption fell sharply in early FY2026 due to high prices while investment demand soared. The report by ICRA and Assocham highlights economic uncertainties and geopolitical tensions driving investment demand, with India emerging as a key player despite declining jewellery demand.
- Country:
- India
A new report by ICRA and Assocham reveals a significant downturn in global gold jewellery consumption in FY2026, attributed primarily to soaring prices. Despite this decline, investment in gold is notably on the rise amid persisting economic uncertainties, marking a shift in global market trends.
The consumption of gold jewellery dropped by 17% year-on-year in the first half of FY2026. Meanwhile, investment demand surged impressively by 60% during the same period, reflecting investors' preference for safe-haven assets like gold bars, coins, and ETFs amid geopolitical and economic volatility.
India's gold sector is also experiencing notable changes, driven by regulatory support and increased formalization. Although jewellery demand has dropped due to high prices, India surpassed China as the largest consumer in FY2025. Strong investment demand and policy measures are expected to bolster the sector's medium-term growth.
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