Gold Market Shake-Up: Jewellery Demand Drops 17%, Investment Jumps 60% in H1 FY26

• Global gold jewellery consumption declined by 17% in H1 FY26, extending a 15% fall from FY25, due to high prices.
• Investment demand for gold (bars, coins, ETFs) surged by 60% in H1 FY26, following a 74% rise in FY25.
• The shift indicates gold's evolving role from a consumption-driven commodity to a strategic financial hedge.
• High gold prices have eroded affordability, particularly in key markets like India and China.
• Central banks are also driving demand by increasing gold purchases to diversify reserves and reduce dollar reliance.

Key Questions Answered

Why are global consumers stepping back from gold jewellery purchases?

Global consumers are stepping back from gold jewelry purchases primarily due to significantly increased prices and economic uncertainty.

How much did gold investment demand jump in the first half of FY2026?

Based on the available information, the exact percentage jump in gold investment demand for the first half of FY2026 is not specified.

Are central banks influencing global gold prices with their purchases?

Yes, central banks' gold purchases are influencing global gold prices. Their aggressive buying is a significant factor driving recent price surges.