National News
WGC India Gold Market Update April 2026: The Indian Gold Market In Early 2026 Was Characterized By A Resilient Recovery
The Indian gold market in early 2026 is characterized by a resilient recovery following a volatile March. After gold prices experienced their weakest monthly performance in over a decade—dropping 12% in USD and 8% in INR—prices partially stabilized in April. This recovery is supported by persistent geopolitical risks and a softening US dollar, though prices remain 13% below the January peak.
Demand Dynamics & Retail Performance
Despite price volatility, listed jewellers reported a stellar Q1 2026, with revenue growth between 32% and 124% y/y. This surge was fueled by a robust wedding season, higher average ticket sizes, and aggressive store expansions. While retail jewellery demand was muted in early March due to price spikes, interest shifted toward investment products like bars and coins. Interestingly, “old gold” exchanges accounted for nearly 50% of retail sales, highlighting consumer sensitivity to high prices.
Investment Trends
- Gold ETFs: India saw its 11th consecutive month of inflows in March (INR 22.7bn), despite high redemptions from profit-taking. Q1 2026 marked the strongest quarterly inflow on record, bringing total holdings to 115 tonnes.
- Digital Gold: Purchases via UPI remain well above historical averages, with February volumes hitting 1.9 tonnes (53% above the 13-month average), signalling a growing retail preference for accessible digital assets.
Supply & Central Bank Reserves
Domestic supply tightened significantly in April as gold discounts narrowed from US8/oz. This shift was driven by new import curbs on gold-bearing alloys and customs bottlenecks. Consequently, March imports hit a nine-month low (approx. 20–25t). Meanwhile, the Reserve Bank of India (RBI) maintained steady reserves, holding 880.5 tonnes of gold, which now constitutes 17% of total forex reserves.
Outlook: Market sentiment remains optimistic for the upcoming summer wedding season and festivals like Akshaya Tritiya, with price stability expected to release pent-up consumer demand.
National News
NPCI Defers Rollout Of UPI Merchant Discount Rate Until After Diwali
Given Typical Retail Margins Of 2%–6% On Bullion and Plain Gold Jewellery, Absorbing A 0.4% Fee—Or Up To ₹300 Per Large Transaction—Would Have Directly Eaten Into Festive Profitability. The Deferral Keeps Bottom Lines Protected Through Dhanteras and Diwali.
The National Payments Corporation of India’s (NPCI) UPI and Services Steering Committee has deferred the implementation of Merchant Discount Rates (MDR) on select person-to-merchant (P2M) UPI transactions until immediately after Diwali.
The move aims to protect consumer sentiment and keep operational costs steady for businesses during the peak festive shopping season. A specific implementation date will be announced separately.
Key Highlights
- Festive Relief for Retail: The deferment ensures merchants face no additional payment processing costs during peak festive demand, helping avoid disruptions to consumer spending.
- The Approved MDR Structure:
- Applies only to eligible P2M transactions above Rs 2,000 at a rate of 0.4%.
- Capped at Rs 300 for high-value transactions of Rs 75,000 and above.
- Everyday low-value payments and small merchants remain fully exempt, preserving zero-cost digital transactions for general consumers.
- Timeline Adjustment: Originally notified on September 15 for an October 15 rollout, the framework will now take effect post-Diwali, giving banks, payment aggregators, and merchants additional runway to align their systems and communicate terms clearly.
Jewellery purchase values routinely exceed the Rs 2,000 threshold and frequently touch or surpass the Rs 75,000 cap. Given typical retail margins of 2%–6% on bullion and plain gold jewellery, absorbing a 0.4% fee—or up to Rs 300 per large transaction—would have directly eaten into festive profitability. The deferral keeps bottom lines protected through Dhanteras and Diwali.
Introducing transaction fees just as footfall surges would have forced retailers to decide whether to absorb the cost or pass it on to buyers (via checkout surcharges or selective discounts). Avoiding this choice prevents awkward billing counter negotiations and cart abandonment during rush hours.
NPCI Defers Rollout Of UPI Merchant Discount Rate Until After Diwali
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