The World Gold Council’s Q1 2026 report points to a clear structural shift in the global gold market, with investment demand emerging as the key driver behind rising prices rather than traditional consumer demand.
Total global gold demand reached 1,231 tons, up 2% year-on-year (YoY), while the total value of demand surged to a record $193 billion, supported by historic price gains. Average gold prices reached $4,873 per ounce during the quarter, with a record peak of $5,598 per ounce.
Investment in gold bars and coins led the market, with demand jumping 42% YoY to 474 tons, driven primarily by strong Asian demand, particularly from China and India, amid escalating geopolitical risks, a weaker US dollar, and mounting global inflation concerns. Central banks also continued strengthening gold reserves through robust purchases totaling 244 tons during the quarter, reflecting ongoing diversification of reserve assets and hedging against economic and geopolitical volatility.
In contrast, jewelry demand came under significant pressure due to record-high prices, with purchased volumes falling 23% to below 300 tons for only the second time on record. However, jewelry spending value climbed to record levels, underscoring gold’s continued role as a store of value and savings instrument among consumers. Industrial demand posted modest growth, supported by expanding use of gold in electronics and AI infrastructure applications.
On the supply side, mine production and recycling rose slightly as producers benefited from elevated prices. The report expects supply growth to remain limited due to structural challenges facing the development of new mining projects.
The report also expects gold to remain supported throughout 2026 amid persistent geopolitical tensions, sustained Asian investment demand, and continued central bank buying, despite pressure from higher interest rates and weaker consumer jewelry demand.
The World Gold Council’s Q1 2026 report points to a clear structural shift in the global gold market, with investment demand emerging as the key driver behind rising prices rather than traditional consumer demand.
Total global gold demand reached 1,231 tons, up 2% year-on-year (YoY), while the total value of demand surged to a record $193 billion, supported by historic price gains. Average gold prices reached $4,873 per ounce during the quarter, with a record peak of $5,598 per ounce.
Investment in gold bars and coins led the market, with demand jumping 42% YoY to 474 tons, driven primarily by strong Asian demand, particularly from China and India, amid escalating geopolitical risks, a weaker US dollar, and mounting global inflation concerns. Central banks also continued strengthening gold reserves through robust purchases totaling 244 tons during the quarter, reflecting ongoing diversification of reserve assets and hedging against economic and geopolitical volatility.
In contrast, jewelry demand came under significant pressure due to record-high prices, with purchased volumes falling 23% to below 300 tons for only the second time on record. However, jewelry spending value climbed to record levels, underscoring gold’s continued role as a store of value and savings instrument among consumers. Industrial demand posted modest growth, supported by expanding use of gold in electronics and AI infrastructure applications.
On the supply side, mine production and recycling rose slightly as producers benefited from elevated prices. The report expects supply growth to remain limited due to structural challenges facing the development of new mining projects.
The report also expects gold to remain supported throughout 2026 amid persistent geopolitical tensions, sustained Asian investment demand, and continued central bank buying, despite pressure from higher interest rates and weaker consumer jewelry demand.
