Metals Focus sees gold investment demand overtaking jewellery in India 2026
This story was originally published at 22:18 IST on 5 June 2026
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--Metals Focus: Gold invest demand saving grace for industry amid high prices
--CONTEXT:Precious metals consultancy Metals Focus launches 'Gold Focus 2026'
--Metals Focus: Global gold mine supply to rise 2% in 2026
--Metals Focus: Gold price to reach new record high towards end of 2026
--Metals Focus: Gold invest demand in India to overtake jewellery demand 2026
--Metals Focus: Global gold investment demand to rise 15% in 2026
--Metals Focus: US Fed rate hike hopes broadly priced into gold
--Metals Focus: See global central bank gold purchases at 750 tonnes in 2026
--Metals Focus: Don't see wedding-related gold purchases falling in India
MUMBAI – Investment demand for gold in India is likely to surpass demand for jewellery in the country in 2026, according to global precious metals consultancy Metals Focus. While investment demand is likely to be lower on a yearly basis, it will still be higher than the declining jewellery demand, Harshal Barot, senior research consultant at Metals Focus, said Friday at the launch of 'Gold Focus 2026' here.
Despite a sharp fall in gold jewellery demand in the last few years, Barot does not expect wedding-related gold purchases to decline. Jewellery demand declined materially in 2025 in response to surging gold prices. Discretionary and daily-wear demand had suffered the most, Barot said. "In countries like India, we have (seen) a mix of products being shifted to low carats, plus some shift towards gold-plated silver jewellery as well, and reduction in outright purchase volumes because consumer budgets are typically limited when they go to buy jewellery," Barot said.
Investment demand for the precious metal has been a saving grace for the industry amid surging prices, Barot said. Global gold investment demand is expected to rise 15% on year in 2026. Retail investment in India had jumped 17% on year in 2025, with investment products such as bars and coins contributing a large share to overall sales.
After rising to a record high in January, gold prices have corrected a fair bit since the war in West Asia started as rising energy prices have stoked concern about inflation and raised the probability of an interest rate hike by the US Federal Reserve later this year. Metals Focus expects gold prices to make new highs towards the end of this year or in the beginning of 2027 as fundamental drivers of the price, such as strong demand from global central banks, remain in place.
Barot sees global central banks' purchases of gold this year at 750 tonnes. Moreover, expectations of a rate hike by the Fed are broadly priced into gold right now, he said. Meanwhile, global supply of the yellow metal from mines is expected to rise 2% in 2026. Barot said "99% of the mines are now profitable because of the gold prices, which has led to higher margins".
At 2147 IST, the August futures of gold on COMEX were down over 3% from Thursday at $4,356.3 per ounce. End
US$1 = INR 94.94
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Reported by Ashutosh Pati and Abhijit Doshi
Edited by Rajeev Pai
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