2% increase in demand for the yellow metal during the first quarter

The “Gold Demand Trends” report for the first quarter of 2026, issued by the World Gold Council, showed that the total quarterly demand for gold “including over-the-counter trading” rose by 2% year-on-year to reach 1,231 tons.

According to a press release issued today, despite the limited growth in quantities, the total value of the order recorded an unprecedented jump of $193 billion, an increase of 74% compared to the same period last year, driven by record price levels.

At the global market level, individual investors were attracted to the strength of gold’s price momentum and its role as a safe haven, which contributed to an increase in demand for bullion and coins by 42% on an annual basis, reaching 474 tons.

In China, demand jumped 67% to a record high of 207 tons, surpassing the previous quarterly record of 155 tons set in the second quarter of 2013.

Other Asian markets, including India, South Korea and Japan, also witnessed a noticeable increase in purchases of bullion and currencies, indicative of a structural shift in demand patterns for gold. This momentum extended to the United States and Europe, where demand rose by 14% and 50%, respectively.

With regard to gold-backed exchange-traded funds, demand remained positive during the first quarter, with holdings increasing by about 62 tons, mainly driven by the strength of listed funds in Asia, which added 84 tons. However, outflows during the month of March, most of which were from funds listed in the United States, limited the pace of growth that prevailed at the beginning of the year.

In contrast, demand for jewelry declined by 23% year-on-year to reach 300 tons, in direct response to high price levels during the first quarter.

Declines were recorded in all major markets, especially in China (-32%), India (-19%) and the Middle East (23%). However, on the value front, demand for jewelry rose, reflecting consumers’ continued willingness to spend on gold despite record prices.

Market analyzes indicate that a portion of spending on jewelry has shifted toward bullion and currencies, especially in China and India, where jewelry is traditionally a means of savings and investment.

Central banks continued to support overall demand, adding 244 tons to global reserves during the first quarter, exceeding the levels of the previous quarter and the five-year average, despite recording sales from some parties, including banks in Turkey and Russia and the State Oil Fund of the Republic of Azerbaijan “SOVAZ.”

On the supply side, total gold supply increased by 2% year-on-year to 1,231 tons.

Mine production hit a new record high during the first quarter, while recycling rose by only a modest 5% despite higher prices, indicating a relatively limited supply response and tighter market conditions.

Louise Street, senior market analyst at the World Gold Council, said that the year 2026 witnessed notable fluctuations in gold prices, with prices peaking above $5,400 per ounce in January before witnessing an important but controlled correction. The combination of price momentum and rising geopolitical risks contributed to driving investment demand, especially in Asia, as investors turned to physical gold in search of safety, while continued central bank purchases offset tactical selling.