WGC Reports Record Q1 2026 Gold Demand as Investment Offsets Jewellery Slump
Gold | 2026-04-30 05:33:25
Central banks continued to accumulate gold, adding a net 244 tonnes during the quarter, up 3% annually.
By Paul Ploumis
SEATTLE (Scrap Monster): World Gold Council reported that global gold demand reached a record high value in Q1 2026, driven by robust investment buying despite weaker jewellery volumes. Total demand, including OTC transactions, rose 2% year-on-year to 1,231 tonnes, while surging prices pushed the overall value up 74% to a historic US$193 billion.
Investment demand remained the primary growth engine, with bar and coin purchases climbing 42% to 474 tonnes—the second-highest quarterly level on record. Strong participation from Asian investors significantly boosted physical gold buying. Meanwhile, inflows into gold-backed ETFs rose by 62 tonnes, although momentum slowed compared to Q1 2025 due to notable outflows from U.S.-based funds in March.
Jewellery demand volumes declined sharply by 23% year-on-year amid record-high prices, but total spending still increased 31%, reflecting resilient consumer sentiment. Central banks continued to accumulate gold, adding a net 244 tonnes during the quarter, up 3% annually.
The London Bullion Market Association gold price averaged a record US$4,873 per ounce, peaking at US$5,405 in January. Looking ahead, geopolitical risks, inflation concerns, and sustained high prices are expected to support continued investment and central bank demand through 2026.
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What will drive gold demand in the coming months?
Frequently Asked Questions
- What drove the record gold demand in Q1 2026?
Strong investment demand, particularly in bars, coins, and ETFs, was the primary driver.
- Why did jewellery demand decline?
Record-high gold prices discouraged volume purchases, although total spending still increased.
- How did central banks contribute to demand?
They added 244 tonnes of gold, reinforcing gold’s role as a strategic reserve asset.
