Gold prices held above $4,000 per ounce in July, with the precious metal closing at $4,046.15 on July 31, according to the World Gold Council's Q2 2026 Gold Demand Trends report. The metal posted a small gain of +0.95% for the month, maintaining its position above the psychological threshold as investors continued to assess monetary policy outlook and the next Federal Open Market Committee meeting scheduled for September 16. Despite the price strength, gold mining equities experienced volatility, with the MarketVector Global Gold Miners Index (MVGDXTR) declining 1.26% for the month, bouncing back early before losing steam as gold pulled back.
The National Stock Exchange of India (NSE) has announced the launch of Electronic Gold Receipts (EGRs), a new segment designed to bring greater transparency, efficiency and formalisation to India's gold market. According to NSE's statement, the launch of EGRs is expected to bridge the gap between physical gold and financial markets by offering a regulated and secure platform for trading in gold. EGRs are dematerialised securities that represent ownership of physical gold, which is stored in SEBI accredited vaults and held electronically through depositories. Each EGR is fully backed by physical gold and can be traded on the exchange, integrating gold into the formal financial system.
The Indian government is likely to roll out regulations for digital gold in the coming year, backed by discussions involving critical ministries and the Reserve Bank of India. According to The Economic Times, the Digital Precious Metals Assurance Council of India (DPMACI) has been playing a pivotal role in this process, holding a series of consultations over the past month with the finance ministry, the Reserve Bank of India and the consumer affairs ministry. The industry-led self-regulatory body was set up three months ago by digital players like SafeGold, MMTC-PAMP, Augmont and fintech platforms - PhonePe and Gullak.
DPMACI chairperson Nirupama Soundarajan told The Economic Times that consultations are underway to work out a regulatory framework for digital gold players so that the interests of consumers are protected and fly-by-night operators do not get a chance to dupe them. The regulations are expected to come in place next year as digital gold as a product is gaining popularity among Indians. According to The Economic Times, investors accumulated about 10 tonnes of gold through digital platforms in FY26, as reported by DPMACI. Digital gold allows users to buy and sell 24-karat gold through fintech apps and online platforms, often in very small amounts starting from ₹10 or ₹100.
India currently holds over 31,000 tonnes of gold worth ₹314.9 lakh crore, but gold ETFs account for only 12% of investment demand despite growing from just 3% in 2018. The WGC believes that mobilising even a small share of these holdings can unlock significant economic value by deepening financial markets and strengthening capital formation. The transition from physical gold hoarding to a transparent, paper gold ecosystem aligns directly with India's Viksit Bharat 2047 vision, which seeks to transform the nation into a developed economy within 100 years of its Independence. The WGC suggests expanding pension fund allocation to gold instruments and enabling physical redemption of gold ETFs to bridge the gap between financial holdings and cultural ownership.
