Gold demand rose globally in last 3 months; India, China leading in buying spree
Jewellery demand, however, remains less. Jewellery demand in India dropped
New Delhi, Apr 29: More and more people are buying gold around the world and the demand has increased over the last three months.
According to the World Gold Council (WGC), the global demand for gold rose 2 per cent year-on-year to 1,231 tonnes in the first quarter of 2026, while the total value of demand jumped 74 per cent to a record US$193 billion.
This increased demand has been driven by a sharp rally in prices and strong investor appetite, according to the World Gold Council’s latest Gold Demand Trends report.
The average LBMA gold price reached a record US$4,872.9 per ounce during the quarter, up 70 per cent from a year earlier, after touching a historic high of US$5,405 per ounce in January.
Investment demand remained the key growth engine.
Global bar and coin demand climbed 42 per cent year-on-year to 473.6 tonnes, making it the second-highest quarter on record.
Asian investors led the buying spree, with China recording a record 206.9 tonnes and India rising 34 per cent to 62.3 tonnes.
Gold-backed exchange traded funds (ETFs) also stayed positive, adding 62 tonnes globally in Q1, although inflows slowed sharply from the exceptionally strong first quarter of 2025. Asia was the strongest region for ETF accumulation, while North American funds posted outflows late in the quarter.
In contrast, jewellery demand remained under pressure as record prices curbed consumer purchases. Global jewellery consumption fell 23 per cent year-on-year to 299.7 tonnes, the weakest quarterly level since the pandemic period.
However, spending on jewellery still rose 31 per cent to US$47 billion, signalling resilient sentiment despite lower volumes.
India’s jewellery demand dropped 19 per cent to 66.1 tonnes, though the value of purchases touched a record US$10 billion for a first quarter.
Consumers increasingly shifted towards lighter-weight and lower-carat products, while some buyers redirected spending into bars and coins.
Central banks continued to underpin the market, purchasing a net 243.7 tonnes of gold in the quarter, up 3 per cent from a year ago. Poland and Uzbekistan were among the largest reported buyers, reinforcing the trend of reserve diversification amid geopolitical uncertainty.
Technology demand also edged higher by 1 per cent to 81.6 tonnes, supported by growing use of gold in semiconductors and AI infrastructure.
On the supply side, total gold supply increased 2 per cent to 1,230.9 tonnes, helped by record first-quarter mine production of 884.7 tonnes and a 5 per cent rise in recycling volumes.
Looking ahead, the World Gold Council said geopolitical tensions, inflation concerns and elevated prices are likely to continue supporting investment and central bank demand through 2026, while jewellery demand may remain subdued. (BVI)
