Overview of Indian Precious Metals Market Sentiment
- The Metals Focus India team attended the India International Jewellery Show (IIJS) and India Gold Conference (IGC) in August 2026, noting improving sentiment ahead of the festive season (p. 1).
- Market activity has improved from weak levels in May and early June, which were caused by regulatory changes and high prices (p. 1).
Government Policy and Regulatory Impacts
- On May 13th, the Indian government increased import duties on gold and silver from 6% to 15% (p. 1).
- The government delayed gold import licence renewals for banks and refineries and placed silver in the "restricted" category requiring DGFT licences (p. 1).
- These measures, combined with a prime ministerial appeal to avoid gold purchases, caused gold jewellery sales to collapse to 20–30% of normal business in May (p. 1).
- Licensing issues have largely been resolved, with gold licences renewed in May and silver import licences now being issued to traders and banks (pp. 1, 3).
Gold Market Dynamics
- Gold entered 2026 with strong momentum, record prices, and record Q1 inflows for gold ETPs, though investment cooled in Q2 (p. 3).
- Jewellery demand saw consumers shifting to lighter, lower carat, and studded pieces, with Q2 volumes remaining 15% lower year-on-year despite some improvement during Akshaya Tritiya (p. 3).
- While retailers are restocking for the festive season, domestic gold prices continue to trade at a discount due to dealers selling older inventories, and unofficial imports have reportedly increased (p. 3).
Silver Market Dynamics
- Silver imports fell to a three-year low of 1,874t in H1 2026 (25% below the 10-year average) with shipments of only 47t in May and 37t in June (p. 5).
- MCX warehouse vault stocks fell from around 280t at the end of May to 118t in July as available stocks were absorbed (p. 5).
- Domestic silver premiums rose to around $6.3/oz in early July due to supply constraints but fell to near $1 by mid-August after banks and traders received approximately 1,000t of import quotas (p. 5).
- Silver investment has recovered recently, with ETPs adding 175t in June and 65t in July, though high prices continue to weigh on silverware demand (p. 5).
Global Precious Metals Briefs
- Gold prices slipped to around $4,600, and silver retreated below $69 after reaching a two-month high above $70 (p. 1).
- Shanghai Electric launched the second phase of its Jilin hydrogen-based biomethanol plant, targeting a 200kt annual capacity (p. 1).
- Northam initiated a competitive sale process following an unsolicited approach from another South African PGM producer (p. 1).

Key takeaways from Indian conferences: improving sentiment ahead of festivals

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