NEW YORK: Global gold demand rose 2% year on year in the first quarter to 1,230.9 tonnes, including over the counter activity, as stronger investment in bars and coins and continued central bank buying offset a sharp decline in jewellery consumption, the World Gold Council said in its latest Gold Demand Trends report. The value of quarterly demand climbed 74% to a record $193 billion as prices stayed at historically elevated levels through much of the January to March period.
Bar and coin investment rose 42% from a year earlier to 473.6 tonnes, marking the second strongest quarter on record for that segment. Gold-backed exchange traded funds also remained in positive territory, with holdings increasing by 62 tonnes globally, although that was far below the 229.9 tonnes added in the same quarter of 2025. Total investment demand, which includes bars, coins and ETFs, eased 5% to 535.6 tonnes after March outflows from U.S. funds cut into earlier gains.
Asia provided much of the strength in physical investment demand. Mainland China recorded 206.9 tonnes of bar and coin demand, up 67% from a year earlier and the strongest quarter on record for that market. India also posted a sharp increase, with bar and coin demand rising 34% to 62.3 tonnes. Overall Indian gold demand rose 10% to 151 tonnes, with investment demand at 82 tonnes exceeding jewellery demand of 66.1 tonnes during the quarter.
Investment reshapes the market
Jewellery demand moved in the opposite direction, falling 23% year on year to 299.7 tonnes, the weakest quarterly level since the second quarter of 2020. Even so, spending on gold jewellery rose 31% to a record first quarter value of $47 billion as buyers paid more for lower volumes. Mainland China’s jewellery demand fell 32% to 85.2 tonnes, while India’s dropped 19% to 66.1 tonnes. Middle Eastern markets also posted double digit declines in volume terms.
Official sector buying remained firm. Central banks and other institutions added 243.7 tonnes of gold on a net basis in the quarter, up 3% from a year earlier and 17% from the previous quarter. Poland and Uzbekistan were the largest reported buyers, adding 31 tonnes and 25 tonnes respectively, while reported selling increased from Turkey, Russia and the State Oil Fund of Azerbaijan. Demand for gold used in technology edged up 1% to 81.6 tonnes, with electronics accounting for 69.3 tonnes.
Gold prices lift value to records
The gold price itself was a major driver of the quarter’s record demand value. The LBMA PM price averaged $4,872.9 an ounce in the first quarter, up 70% from a year earlier, and reached an intraday quarterly high of $5,405 in January before later correcting. Even with that puscxxllback, gold delivered a 6% return during the quarter. The higher price environment helped expand the dollar value of demand even as several large consumption markets bought fewer tonnes of metal.
On the supply side, total gold supply also rose 2% to 1,230.9 tonnes, matching total demand for the quarter. Mine production increased 2% to 884.7 tonnes, a record for a first quarter, while recycled gold rose 5% to 366 tonnes. The World Gold Council said the latest figures showed a continued shift in the structure of the market, with investment and official sector demand outweighing weaker jewellery fabrication in shaping global gold flows at the start of 2026 – By Content Syndication Services.