Global gold demand rose modestly in volume but reached a record value in the first quarter of 2026, driven largely by strong investment activity and rising prices, according to the World Gold Council’s latest Gold Demand Trends report.
Total gold demand, including over-the-counter (OTC) trading, increased by 2 percent year-on-year to 1,231 tonnes. However, the sharp rise in gold prices pushed the total value of demand up by 74 percent to a record US$193 billion.
Investment demand was the key driver of growth during the period. Bar and coin demand surged by 42 percent year-on-year to 474 tonnes, marking the second-highest quarterly level on record. The increase was largely led by Asian investors seeking safe-haven assets amid global economic uncertainty.
Gold-backed exchange-traded funds (ETFs) also recorded inflows of 62 tonnes, although this was significantly lower than the strong inflows seen in the same period last year, partly due to outflows from US-based funds in March.
In contrast, jewellery demand remained under pressure due to record-high prices. Volumes fell by 23 percent year-on-year to 335 tonnes, although overall spending on jewellery rose by 31 percent, indicating continued consumer interest despite higher costs.
Central banks continued to play a significant role in the market, with net purchases rising by 3 percent to 244 tonnes during the quarter, even as some selling activity increased.
Demand for gold in technology saw a modest rise of 1 percent to 82 tonnes, supported by ongoing growth in artificial intelligence infrastructure and electronics production.
On the supply side, total gold supply increased by 2 percent year-on-year to 1,231 tonnes. This was driven by a combination of higher mine production and a 5 percent increase in recycled gold.
Gold prices remained a central factor shaping market dynamics. The LBMA gold price averaged a record US$4,873 per ounce during the quarter, reaching an all-time high of US$5,405 per ounce in January before experiencing a correction. Overall, gold delivered a return of 6 percent in the first quarter.
The World Gold Council noted that investment demand now significantly exceeds fabrication demand, reflecting a structural shift in the market as investors increasingly turn to gold amid geopolitical tensions, inflation concerns, and elevated prices.
Looking ahead, the Council expects geopolitical risks and macroeconomic uncertainty to continue supporting investment and central bank demand throughout 2026, while jewellery demand is likely to remain subdued, although consumer spending on gold products may stay resilient.
