Global Gold Demand Hits Record High in Q1 2026
Global gold demand reached a record level in the first quarter of 2026, supported by geopolitical uncertainty and strong investor interest, according to a report from the World Gold Council.
Total demand, including over-the-counter (OTC) trading, increased 2% year-over-year to 1,230.9 tonnes.
Demand Value Surges on Higher Gold Prices
While volume growth was modest, the sharp rise in gold prices significantly boosted overall demand value. The total value of gold demand jumped 74% to a record $193 billion, reflecting strong price momentum during the quarter.
Investment Demand Led by Asia
Demand for gold bars and coins surged 42% to 474 tonnes, marking one of the strongest quarters on record. Asian investors played a key role, driving demand for physical gold investment products.
However, on a quarter-over-quarter basis, total gold demand declined 6%, highlighting volatility in the market during Q1.
Gold Prices Show High Volatility
Gold prices experienced significant swings throughout the quarter. Spot gold initially surged nearly 30% to a record $5,595.46 per ounce in January, building on a strong 2025 rally.
The price surge was driven by:
- Safe-haven demand amid geopolitical tensions
- Trade uncertainty and tariffs
- Easing interest rates
- Strong central bank purchases
- Increased inflows into gold-backed ETFs
ETF Flows and Central Bank Buying
Gold-backed exchange-traded funds (ETFs) saw net inflows of 62 tonnes in Q1, although this was lower than the strong inflows recorded in early 2025.
Central banks continued to accumulate gold, purchasing a net 244 tonnes, representing a 3% increase year-over-year, despite a slight uptick in selling activity during the quarter.
Jewellery Demand Weakens on High Prices
Despite strong investment demand, global jewellery consumption declined 23% year-over-year to 335 tonnes. Elevated gold prices reduced consumer demand, particularly in price-sensitive markets.
March Selloff Defies Safe-Haven Trends
After peaking in January, gold prices declined in February but still posted an 8.5% monthly gain. However, prices dropped sharply in March following escalating geopolitical tensions, marking the worst monthly performance in over a decade.
This decline surprised market participants, as gold typically performs well during periods of geopolitical instability.
Outlook: Geopolitics to Drive Gold Demand
Looking ahead, the World Gold Council expects geopolitical factors to remain a key driver of gold demand in 2026 and beyond.
The report suggests:
- Continued central bank buying
- Ongoing ETF inflows
- Strong bar and coin demand
- Moderate increase in gold recycling
- Higher mine supply in response to elevated prices
At the same time, persistently high prices are expected to continue weighing on jewellery demand.
