Global gold jewellery demand slipped in the second quarter of 2026, but consumer spending held steady – demonstrating the metal’s safe-haven appeal.

According to the World Gold Council (WGC)’s Q2 Gold Demand Trends report, soaring prices coupled with broader inflationary pressures made gold jewellery more expensive, resulting in a 17 per cent year-on-year dip to 278 tonnes, its lowest quarterly volume since the pandemic. By comparison, Q2 spending on gold jewellery rose 14 per cent to US$40 billion.

“The quarter reinforced the split between volume and value: Consumers bought less gold in fine-weight terms, but spending remained far more resilient,” remarked WGC.

The divergence was more pronounced in first-half figures. Global jewellery demand by value reached US$86 billion, up 22 per cent year on year from US$71 billion – despite weaker tonnage demand.

“This points to a market in which high prices are suppressing volumes, but consumer expenditure remains strong, particularly where gold jewellery retains a strong saving, gifting or wealth-preservation role,” the council added.

Consumers are also adapting to current prices. The report found that lightweight products are steadily gaining share across many markets while lower-karat designs are increasingly favoured in some parts of Asia.

Meanwhile, “old-for-new” gold jewellery exchange is becoming more prevalent, particularly in China and India, allowing consumers to manage affordability while maintaining exposure to gold jewellery.

The growing appeal of gold investment products also remained a headwind for jewellery volumes, particularly where lower premiums – and in some cases more favourable tax treatment – made bars and coins more attractive, said WGC.

Top markets

Gold jewellery demand in China weakened further in Q2, falling 28 per cent year on year to its lowest second-quarter level since 2004. The decline was partly seasonal, with Q2 typically a quieter period for jewellery buying, but it also reflected the same pressures that weighed on the market earlier in the year: Fragile consumer confidence and the deterrent effect of elevated, volatile gold prices.

Demand for the first half year was 30 per cent lower from the previous year at 136t, but consumers continued to spend big on gold jewellery despite buying less in fine-weight terms: H1 spending was up 11 per cent to US$21 billion. This underscores the continued appeal of gold jewellery in China, even as high prices push consumers towards lighter-weight products.

In India, gold jewellery demand dipped 15 per cent year on year to 75t in Q2, the lowest second quarter since the pandemic, despite improving 14 per cent quarter on quarter from a weak Q1. First-half demand was down 17 per cent year on year to 141t while demand value rose 26 per cent year on year to US$21 billion.

“Consumers continued to adapt to high prices through product substitution. Demand increasingly gravitated towards lighter-weight jewellery, while organised retailers continued to benefit from growing sales of studded jewellery and lower-karat products,” WGC said.