Gold Demand Trends: Q3 2026

Global gold jewellery consumption fell y/y for the 13th consecutive quarter in Q3. Demand fell to 313t – the weakest third quarter in our data series; below even the pandemic-affected Q3’20 total of 331t.

Demand nevertheless recovered 12% q/q, led by seasonal recoveries in China and India and, at times during the quarter, some support from lower prices.

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

The divergence between volume and value remained a prominent theme. Despite the tonnage decline, the global value of Q3 jewellery demand grew modestly y/y to US$43bn. Across the first nine months of the year the divergence is more stark: jewellery demand volumes fell 19% to 889t, the lowest y-t-d total in our data series, while value increased 15% to almost US$130bn.

China

Chinese gold jewellery consumption fell 22% y/y to 66t, although demand rebounded sharply from Q2’s seasonal low (+30% q/q). The recovery was uneven: July was typically quiet and August remained subdued as the rising gold price squeezed affordability. Conditions improved in September, when a price pullback encouraged consumer purchases and retailer restocking ahead of the Q4 peak season. 

Viewed through a longer-term lens, demand remained anaemic: this was the weakest Q3 since 2006. Elevated gold prices and the additional VAT burden on gold jewellery relative to investment, along with slowing economic growth and continued property-sector weakness weighed on affordability and consumer confidence. These pressures pushed y-t-d jewellery consumption down 27% to 202t.

The market is becoming increasingly polarised. Lightweight, design-led Hard Pure Gold products remained popular, particularly more intricate pieces incorporating gemstones and enamel. At the other end of the spectrum, heavier pieces with low labour charges gained traction when the price dipped in September, appealing to consumers seeking both aesthetic and investment value.

Spending remained considerably more resilient than volumes: Q3 demand value fell just 4% y/y to US$9bn, while y-t-d spending rose 6% to almost US$30bn.

Looking ahead, seasonal factors should support a further recovery in Q4, with the National Day holiday in early October starting the peak sales season on a positive note. Barring another sharp rise in the gold price, volumes may strengthen as consumers adapt to current price levels and the VAT regime, while Hard Pure Gold products are expected to remain relatively resilient.

India

Indian gold jewellery consumption fell 20% y/y to 100t, the weakest third quarter since 2020. But demand recovered from a subdued Q2, supported by festive buying.

Y-t-d demand was 18% lower y/y at 241t. Yet spending remained considerably more robust: Q1-Q3 total demand value rose 19% to US$38bn.¹

Affordability remained the overriding constraint: the average domestic gold price in Q3’26 was around 45% higher than a year earlier. 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.²

Concern over rural incomes added to the pressure as monsoon rainfall remained below average across much of the country. Demand in South India, however, benefited from regional festivals.³

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

Middle East and Turkey

Jewellery demand in the Middle East remained weak, as high gold prices, pressure on household purchasing power and continuing geopolitical uncertainty – notable in anaemic tourist numbers – combined to constrain discretionary purchases across the region.

The UAE recorded one of the sharpest declines, down 29% y/y to 4t, while demand in Saudi Arabia fell 12% to 8t. In Egypt, household finances were squeezed by reduced subsidies, persistent inflation and exceptionally high interest rates, limiting gold jewellery purchases. Iranian demand declined 17% to 5t as the ongoing war strained consumer sentiment and disrupted daily life.

Turkey proved relatively resilient by comparison. Demand slipped just 4% y/y to 7t, although it was 15% lower q/q. Consumer sentiment was subdued due to persistent high inflation, domestic political concerns and broader geopolitical uncertainties. The seasonal boost from wedding-related buying failed to offset these pressures.

US and Europe

US gold jewellery demand fell 18% y/y to 21t. Consumers continued to respond to high prices through lighter-weight and lower-carat products, extending the downward trend in volume.

European jewellery consumption also remained soft, falling 11% y/y to 11t – the weakest third quarter since 2020. High prices remained the dominant constraint.

Weakness was broad-based across the region, but France saw the sharpest decline, down 19% y/y. The UK proved comparatively resilient, with demand down 7% y/y. 

The broad volume/value divergence continues in both regions. Despite the sharp tonnage decline, spending on gold jewellery in the US was on par with Q3’25 at US$3bn. The value of European demand grew 10% to a third quarter record of US$1.5bn, with particularly strong value growth in the UK (+14%) and Italy (+13%).

ASEAN markets

Jewellery demand remained weak across ASEAN markets as affordability pressures encouraged consumers to continue buying lighter-weight or lower-carat jewellery.

High gold prices continued to shape jewellery buying across ASEAN, encouraging consumers to favour lighter-weight and lower-carat pieces. Indonesian consumers remained cautious amid challenging economic conditions, while Malaysia saw similarly subdued demand

Thailand improved from Q2, helped by a recovery in consumer buying, although volumes remained below those of Q3 last year. Vietnam was again the weakest of the major regional markets, posting a 39% y/y drop.

Rest of APAC

Japanese jewellery demand fell 20% y/y, as elevated prices continued to weigh on buying of daily wear and bridal jewellery. Meanwhile the fact that prices were relatively rangebound throughout the quarter discouraged quasi-investment buying.

In South Korea, a preference for lighter-weight and lower-carat products continued to constrain gold jewellery consumption despite some support from bridal demand.

Australia was comparatively resilient; demand remained virtually unchanged y/y, rebounding from the weak Q2 level.