Chennai: Gold imports fell 59 per cent in value terms in March to $3.1 billion, a nine-month low. While digital gold purchases and gold ETF inflows continue, jewellery sales remained muted in the month due to high levels of price volatility.
Gold imports fell sharply in March 2026, declining 30 per cent against February and 59 per cent against the same month last year to $3.1bn, a nine-month low. In volume terms, imports are estimated to be 20–25 tonnes, well below the 12-month average of 62 tonnes, said the World Gold Council. The flight disruptions out of the Middle East led to supply disruptions, while price volatility led to softness in demand, said Kavita Chacko, research head, India, WGC.
Meanwhile, the RBI added a marginal 0.17 tonnes to its gold holdings in the week ending 3 April, taking total gold reserves to 880.5 tonnes, accounting for 17 per cent of overall forex reserves, up from 12 per cent a year ago. Gold holdings have broadly remained steady since mid-2025, with the pace of purchases moderating in 2025 to 4 tonnes, following significant additions in 2024 at 73 tonnes. RBI total forex reserves declined 4 per cent to $697 billion over the five weeks till April 3.
Indian gold ETFs extended their inflow streak to the 11th consecutive month in March 2026, recording net inflows of Rs 2270 crore. This, however, was the lowest monthly net inflow in seven months. The moderation was primarily driven by record redemptions of Rs 3160 crore. Nevertheless, cumulative gold holdings rose to 115 tonnes at the end of March.
But, the March quarter recorded the strongest quarterly inflows into Indian gold ETFs, with net inflows of Rs 31600 crore, resulting in an addition of approximately 20 tonnes to total holdings. Nearly 80 per cent of these inflows were concentrated in January.
March saw the addition of 0.31 million new accounts, taking the total number to 12.39 million.
The purchases of digital gold via UPI remained strong in February, albeit below January’s record levels. Total purchases during the month totalled RS 3030 crore, equivalent to an estimated 1.9 tonnes, which is 53 per cent higher than the average monthly volume of 1.2 tonnes over the preceding 13 months.
However, jewellery demand remained muted in the first half of March, impacted by seasonal and financial year-end factors as well as price volatility. Exchange of old gold jewellery remained a key contributor, reportedly accounting for 40–50 per cent of sales, while investment demand for bars and coins continued to be robust
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