World Gold Council: First Quarter Sees 2% Increase in Gold Demand

The World Gold Council's report on "Gold Demand Trends" for the first quarter of 2026 indicated a 2% year-on-year rise in total gold demand, including over-the-counter transactions, reaching 1231 tons.

In a press release issued today, it was noted that despite the modest increase in quantities, the total value of demand surged unprecedentedly to $193 billion, marking a 74% increase compared to the same period last year, driven by record price levels.

Globally, individual investors flocked to gold, drawn by its price momentum and role as a safe haven, resulting in a 42% year-on-year rise in demand for bars and coins, totaling 474 tons.

In China, demand soared by 67% to a record-breaking 207 tons, surpassing the previous quarterly record of 155 tons recorded in the second quarter of 2013.

Other Asian markets, including India, South Korea, and Japan, also saw significant increases in bullion and coin purchases, signaling a structural shift in gold demand patterns. This trend expanded to the U.S. and Europe, where demand rose by 14% and 50%, respectively.

Regarding gold-backed exchange-traded funds, demand remained positive in the first quarter, with holdings rising by approximately 62 tons, primarily driven by robust Asian-listed funds which added 84 tons, although outflows during March, mostly from U.S.-listed funds, limited the growth pace observed earlier in the year.

Conversely, jewelry demand declined by 23% year-on-year to 300 tons, directly responding to high price levels in the first quarter.

All major markets recorded decreases, particularly China with a -32%, India with a -19%, and the Middle East with a -23%. However, in terms of value, jewelry demand increased, reflecting consumers' continued willingness to spend on gold despite record prices.

Market analyses suggest that part of the jewelry spending shifted towards bars and coins, especially in China and India, where jewelry traditionally serves as both a savings and investment medium.

Central banks continued bolstering overall demand, adding 244 tons to global reserves in the first quarter, exceeding the levels of the previous quarter and the five-year average, despite some sales from entities like banks in Turkey and Russia, and Azerbaijan's state oil fund, SOFAZ.

On the supply side, the total gold supply rose by 2% year-on-year, reaching 1231 tons.

Mine production hit a new record in the first quarter, while recycling increased moderately by just 5% despite rising prices, indicating a relatively limited supply response and tighter market conditions.

Louise Street, the chief market analyst at the World Gold Council, commented that 2026 witnessed notable fluctuations in gold prices, peaking above $5,400 per ounce in January before undergoing a significant yet controlled correction. A blend of price momentum and heightened geopolitical risks propelled investment demand, particularly in Asia, where investors turned to physical gold for safety, while ongoing central bank purchases offset tactical sales.