Key insights
- Global gold demand rose in Q1 2026 driven by geopolitical risks and central bank buying. Asian investors led bar and coin demand. Gold-backed ETF buying continued, albeit at a slower pace than the previous year, with outflows from U.S. funds in March. High gold prices led to a decline in jewelry demand. Overall, the report suggests continued safe-haven demand, potentially signaling concerns about broader economic or geopolitical instability.
Investing.com -- Global gold demand in Q1 2026 rose to a record high in a period that was marked by the ongoing Middle East conflict, according to a report by the World Gold Council (WGC).
Total gold demand, including over the counter bullion, rose 2% Y/Y to 1,230.9 tonnes, the WGC report published on Wednesday showed.
“This modest growth in volumes combined with gold’s exceptional price rise, generated a 74% jump in the value of quarterly demand to a record US$193bn,” WGC analysts led by Louise Street said.
“Bar and coin demand of 474t (+42%) was the second highest quarter on record. Asian investors led the charge, hoovering up gold investment products,” the analysts added.
While gold demand rose on a Y/Y basis, the headline figure did slip 6% on a Q/Q basis, hinting at the underlying turbulence the yellow metal saw in the first quarter of this year.
Gold prices went on a roller-coaster ride over Q1, with spot gold initially surging nearly 30% to a record high at $5,595.46/oz on January 29. That advance built on a massive 2025 for gold in which spot prices soared 64.5%, its best annual performance since 1979. The climb was driven by a combination of safe haven demand due to growing geopolitical risks and tariff uncertainty, easing interest rates, elevated central bank buying, and flows into bullion-backed exchange-traded funds.
“Buying of gold-backed ETFs continued in Q1 (+62t), but at a lower rate than the very strong Q1’25 (+230t) following sizable outflows from U.S. funds in March,” the WGC noted in Wednesday’s report.
“Central banks bought 244t (+3% y/y) of gold on a net basis in Q1 despite a visible uptick in selling activity during the quarter,” the authority on gold added.
The WGC also highlighted that, amid the record high gold prices early in the quarter, overall jewellery demand in Q1 slipped 23% Y/Y to 335 tonnes.
In February, spot gold slipped from record levels but still notched a stellar 8.5% gain for the month. However, with the U.S. and Israel launching a joint assault on Iran at the end of February, gold plummeted and proceeded to record its worst monthly performance in over a decade in March.
Several precious metal market participants and analysts noted that gold’s slide in March bucked its historical trend of serving as a bastion during geopolitical crises.
Turning to its outlook on gold, the WGC analysts said geopolitical factors were expected to remain “front and centre in driving gold demand for 2026 and beyond.”
“This supports continued central bank net buying, broad global gold ETF inflows, and bar and coin accumulation. Recycling is expected to see a restrained increase in 2026. High prices are likely to continue taking their toll on jewellery. Mine supply is expected to edge higher again in response to high prices and margins,” the analysts said.