Global consumption of gold jewellery waned in the third quarter of the year, with consumers increasingly opting for daintier items due to high metal prices.

Findings from the World Gold Council’s (WGC) latest Gold Demand Trends report showed Q3 2026 demand for gold jewellery fell 17 per cent year on year to 313 tonnes, marking a 13th consecutive quarterly decline.

It was also the weakest third quarter in WGC’s data series – even worse than 331t in Q3 2020 at the height of the Covid-19 pandemic.

“High prices remained the key constraint on demand in Q3,” explained WGC. “Consumers generally continued to favour lighter-weight and lower-carat purchases. The weakness in volumes was widespread, with China and India together accounting for a large share of the decline.”

Gold hit its third-quarter high on August 24, 2026, reaching US$4,663.70 per ounce.

The council said volume and value continued to diverge. Despite lower tonnage, the global value of Q3 jewellery demand grew year over year to US$43 billion.

In the first nine months of the year, jewellery demand volumes dipped 19 per cent to 889t, the lowest year-to-date total in the WGC data series, while value increased 15 per cent to almost US$130 billion.

China

Polarisation has become even more pronounced in China, with lightweight, design-led Hard Pure Gold products enjoying popularity, especially intricate gem-studded and enamel pieces.

Heavier pieces with low labour charges, meanwhile, gained traction when metal prices dipped in September, appealing to consumers seeking both aesthetic and investment value.

Spending remained resilient amid falling volumes. China’s Q3 gold jewellery demand dropped 22 per cent year on year to 66t while value fell just 4 per cent to US$ 9 billion. Year-to-date spending rose 6 per cent to almost US$30 billion.

“Viewed through a longer-term lens, demand remained anaemic: This was the weakest Q3 since 2006,” remarked WGC. Pricier gold and the additional VAT burden on gold jewellery relative to investment, alongside a weaker economy and property sector weighed on affordability and consumer confidence, it added.

These pressures pushed year-to-date jewellery consumption in China down 27 per cent to 202t.

Barring another sharp gold price increase, volumes could strengthen as consumers adapt to current price levels and the VAT regime, the council noted.

India

Indian gold jewellery consumption fell 20 per cent year over year to 100t, the weakest third quarter since 2020. Demand, however, recovered from a subdued Q2, supported by festive buying.

Year-to-date demand was down 18 per cent to 241t but spending remained robust: Total demand value in the first three quarters rose 19 per cent to US$38 billion.

“Affordability remained the overriding constraint: The average domestic gold price in Q3 was around 45 per cent higher than a year earlier,” said WGC. “Consumers therefore continued to gravitate towards lighter-weight pieces as well as lower-carat and studded jewellery, reducing the fine-weight gold content of their purchases.”

Seasonal factors also played an important role. The later festive calendar shifted some demand that would normally fall in Q3 into Q4, limiting the quarter’s recovery.

“The emphasis on lightweight, lower-carat and studded products extends a trend visible throughout 2026,” remarked the council. “Diamond jewellery sales reportedly performed well as retailers promoted diamond-studded jewellery in 18-, 14- and 9-karat gold; this strategy allows retailers to maintain margins despite selling lower gold volumes.”