Global Gold Demand Rises 2% in Q1 2026 as Investment Demand Surges Amid High Prices

World Gold Council data shows that gold demand remained resilient in the first quarter of 2026, supported by strong investor interest despite elevated prices. 

Demand Growth and Price Surge 

As per The PTI report, total gold demand, including over-the-counter activity, stood at 1,231 tonnes in the January–March quarter, marking a 2% increase compared to 1,205 tonnes a year earlier.  

While volume growth was modest, the value of demand climbed sharply to a record $193 billion, reflecting a 74% year-on-year rise. 

The surge in value was driven by a sharp increase in prices, with the average gold rate reaching $4,873 per ounce during the quarter, up from $2,860 per ounce in the same period last year, an increase of 81%. Prices also showed volatility, crossing $5,400 per ounce in January before moderating later. 

Investment Demand and Regional Trends 

Investor participation strengthened significantly, with bar and coin demand rising 42% to 474 tonnes. Sachin Jain, WGC Regional CEO, India, told PTI that “geopolitical tensions attracted retail investors…driving bar and coin demand up,” highlighting gold’s role as a safe-haven asset. 

China led this surge with demand jumping 67% to a record 207 tonnes, surpassing its previous peak of 155 tonnes recorded in 2013.  

Other Asian markets such as India, South Korea and Japan also saw higher buying. Growth was not limited to Asia, with demand in the US rising 14% and Europe expanding 50%. 

Gold-backed exchange traded funds recorded net inflows of 62 tonnes, supported largely by Asian-listed funds, which added 84 tonnes. However, outflows from US-listed ETFs in March moderated the overall trend. 

Jewellery Demand and Structural Shift 

In contrast, jewellery demand declined sharply by 23% to 300 tonnes due to high prices. The fall was seen across major regions, including China (down 32%), India (down 19%) and the Middle East (down 23%). 

Despite the decline in volumes, the value of jewellery purchases increased, indicating continued consumer spending at higher price levels. Sachin Jain added that some demand has shifted from jewellery to bars and coins, especially in key markets like China and India. 

Central Banks, Supply and Outlook 

Central banks continued to support demand, adding 244 tonnes to reserves, exceeding both the previous quarter and the five-year average.  

The Reserve Bank of India contributed with a purchase of 300 kg. Some selling was reported from institutions in Turkiye, Russia and Azerbaijan. 

On the supply side, total gold availability also rose 2% to 1,231 tonnes. Mine production reached a record for the first quarter, while recycling increased 5%, indicating limited supply response despite high prices. 

Jewellery spending is expected to remain stable in value terms, though volumes may stay under pressure, while supply growth could be affected by potential energy challenges. 

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Conclusion 

The first quarter of 2026 highlights a shift in global gold dynamics, where investment demand, central bank buying and high prices are reshaping consumption patterns despite weaker jewellery volumes. 

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