Overview
- World Gold Council and Metals Focus data for July–September 2026 show formal gold demand in India fell about 29% while informal or illegal inflows jumped to roughly 50 metric tonnes from about 3 tonnes a year earlier.
- Officials and market analysts link the surge in unrecorded arrivals to the government’s earlier rise in import duties to 15 percent, which raised the cost of official imports and encouraged cash, unrouted transactions.
- Bullion prices have retreated from their peaks and were trading near ₹1.38–1.39 lakh per 10 grams of gold by early November 2026, while silver has fallen sharply from January highs to around ₹1.78 lakh per kilogram, prompting jewellers and buyers to stay cautious.
- The cooling in physical demand has not halted broader market moves as Indian equities staged a strong pre‑festival rally and personal‑finance coverage urged SIP diversification and warned that inflation can sharply cut the real value of long‑term goals.
- Policy and legal developments are adding economic stress with Karnataka officials considering bus‑fare increases to cover diesel‑related losses and Lahore police filing that clears a high‑profile suspect of rape while charging three household staff with sexual assault, leaving final court decisions pending.