Total demand grew 2% to 1,231 tonnes, while the dollar value of the quarter jumped 74% to a record $193 billion — driven above all by Asian investment bars and coins.
The first quarter of 2026 ended in a historic triumph for the physical gold market. According to the latest report from the World Gold Council (Gold Demand Trends by the WGC), total global demand (including the over-the-counter / OTC sector) grew by 2% year-on-year, reaching 1,231 tonnes. The main engine of this rally was unprecedented demand for investment bars and coins, predominantly from Asian investors.
1. Record values and price manoeuvres
The start of 2026 was marked by the conquest of a new historic high:
- Historic peak: in January 2026 the global gold price soared to an all-time record of $5,400 per troy ounce.
- Technical correction: after the January triumph the market shifted to profit-taking, and by the end of the first quarter quotes had corrected downward by 6%.
- Explosive growth in money terms: the combination of moderate growth in physical demand volumes and a phenomenal price surge drove the total dollar value of quarterly demand up by 74%, setting an absolute record of $193 billion.
"This modest growth in physical volumes, combined with the exceptional surge in gold prices, led to a colossal jump in the total value of quarterly demand to a record $193 billion," notes WGC senior markets analyst Louise Street.
2. Supply and demand balance in Q1 2026
Global gold supply fully matched demand, rising in the first quarter by 2% year-on-year to 1,231 tonnes.
Components of supply:
- Primary mining: mine production volumes grew by 2% to 885 tonnes.
- Recycling (scrap): extremely high prices encouraged the public to actively hand in metal — recycling volumes rose by 5%, reaching 366 tonnes.
3. The sectoral split: bars vs. jewellery
In recent years the market landscape has changed dramatically: investment demand for physical metal now significantly outpaces industrial and jewellery production.
Bars and coins: an unprecedented Asian rally. Retail investment in bars and coins jumped by 42% year-on-year, reaching 474 tonnes. This is the second-highest quarterly figure on record, entirely driven by Eastern market participants.
- China's absolute record: physical investment demand in China experienced explosive growth, reaching 207 tonnes. The country's previous all-time record (155 tonnes in Q2 2013) was completely shattered.
The jewellery sector under price pressure. The high cost per ounce dealt a heavy blow to physical jewellery volumes:
- In physical terms, jewellery demand collapsed by 23% compared with Q1 of the previous year.
- Yet in money terms, total buyer spending rose by 31%. As WGC senior EMEA analyst Krishan Gopaul points out, this underscores consumers' enduring positive sentiment toward gold — people are willing to spend more money on it even while receiving a smaller physical volume.
4. Institutional demand: central banks and ETFs
- Central banks: net purchases by the official sector totalled 244 tonnes (+3% vs. Q1 2025). Regulators continue to steadily accumulate gold on their balance sheets.
- Exchange-traded funds (ETFs): global gold funds recorded net capital inflows of 62 tonnes. This is a positive signal, although the pace of accumulation was more modest than in the powerful first quarter of 2025 (+230 tonnes).
5. The technology sector and the AI factor
Gold demand from high-tech industries showed modest but steady growth of 1% — to 82 tonnes. The key catalyst here is the rapid development of artificial intelligence (AI) infrastructure, which requires highly reliable micro-components.
WGC forecast: the geopolitical premium will keep widening
The World Gold Council emphasises that geopolitics remains the main factor shaping the market's future in 2026.
- Support for investment: chronic geopolitical risks combined with high inflation will continue to stimulate demand from investors and central banks.
- Pressure on bonds: government bond yields are likely to remain elevated until central banks chart a clear interest-rate trajectory.
- Widening risk premium: the geopolitical premium that has pushed quotes higher in recent years will not merely persist but stands every chance of widening significantly over the year.
- The consumer sector: the jewellery market will remain under heavy price pressure, yet in value terms its performance will retain strong resilience.