Indias love for gold may be going on pause

Added: 2026-05-16

[00:00:12]Prime Minister Narendra Modi is calling on Indians to hold off on gold purchases for a year as the country grapples with the economic fallout of the ongoing war in the Middle East. That includes weddings, festivals, and family celebrations. And in a country like India, that's not a small ask. Not only is gold central to religious offerings and festivals, it's also the primary way millions of people save [music] and invest. India is the second largest gold consumer in the world, importing over 700 tons last year. It also happens to be one of the country's biggest imports, second only to oil.

[00:00:47]>> [music] >> Just as the pressure was building, Indian banks were unable to import gold for a month after administrative delays froze shipments at [music] customs. A meaningful drop in gold purchases could help narrow the trade deficit and ease pressure on the rupee. Modi has also urged citizens to work from home where possible, cut back on foreign vacations, [music] and curb fuel consumption.

[00:01:09]Energy prices have surged since the war began. With India heavily dependent on oil imports, the impact has been severe.

[00:01:17]That growing [music] strain on the economy may be driving Modi's appeal.