New Delhi, July 2: The second half of 2026 will see bullion prices influenced by changes in tax regulations, increased customs duties, and geopolitical tensions worldwide. Following a recent decline, price fluctuations are expected to continue, with a period of consolidation anticipated. This information was revealed in a report released on Thursday.
According to the All India Gem and Jewellery Domestic Council (GJC), demand for jewelry is expected to remain low, although there may be a surge in sales, particularly in the lightweight jewelry category, during the festive season.
The report indicates that the industry is awaiting clarity on potential tax changes and improvements to the ‘Gold Monetization Scheme.’ Additionally, geopolitical risks remain a significant factor, potentially driving demand for gold as a safe investment.
The report noted that gold and silver prices reached historic highs in the first six months of the year, followed by a decline. This volatility has altered consumer perceptions and the industry’s outlook.
In January 2026, gold prices peaked at ₹170,480 per 10 grams, dropping to approximately ₹142,800 by the end of June. Similarly, silver prices rose above ₹402,490 per kilogram in January, only to fall to around ₹225,940 by the end of June.
This price volatility has prompted investors to seek safer investments, but budget constraints have led to decreased demand for jewelry.
The council reported that customers are increasingly attracted to lightweight jewelry designs, reflecting both budget considerations and changing fashion trends.
The announcement of increased customs duties in May 2026 has raised domestic prices and impacted retail demand. The burden of GST and compliance requirements has put pressure on profits, leading to calls for rationalizing these regulations.
The council reiterated its demand for improvements to the ‘Gold Monetization Scheme’ to utilize idle gold in households, reduce import dependency, and strengthen the domestic supply chain.
Rajesh Rokade, Chairman of the GJC, stated, “We expect robust support for jewelry demand, especially in the lightweight category, during the upcoming festive season and the peak wedding season in the second half of the year.”
He emphasized that cultural factors and India’s deep emotional connection with gold will keep the market strong despite fluctuations.
Rokade added that the market is currently adjusting after reaching extraordinary highs, and while futures prices may improve, retail prices remain elevated.
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