Global gold demand reached a record dollar value in the first quarter of 2026 even as volume gains stayed modest, according to data released by the World Gold Council on 29 April. Total demand including over-the-counter activity rose 2 percent year on year to 1,231 tonnes, but the value of that demand surged 74 percent to USD 193 billion, lifted by an unprecedented quarterly average LBMA price of USD 4,873 per ounce. Prices briefly touched a historical peak of USD 5,405 per ounce in January before entering a notable correction, leaving the metal up 6 percent on a Q1 return basis despite the late-quarter sell-off.
The composition of demand reinforced a structural shift that has been visible since 2022. Bar and coin demand jumped 42 percent year on year to 474 tonnes, with China leading the surge as retail buying climbed 67 percent year on year to a record 207 tonnes, well above the prior quarterly high of 155 tonnes set in mid-2013. The United States and Europe also contributed, with bar and coin demand rising 14 percent and 50 percent respectively, while other Asian markets including India, South Korea and Japan added to the momentum. Physically backed gold exchange-traded funds saw holdings increase by 62 tonnes during the quarter, supported chiefly by inflows into Asian-listed funds.
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Central banks continued to buy in size, adding an estimated 244 tonnes on a net basis, a 3 percent year-on-year increase and a level above the prior five-year quarterly average despite a visible uptick in tactical selling by some institutions. The People's Bank of China added 7 tonnes, more than doubling its purchases from the preceding quarter and lifting reserves to 2,313 tonnes, equivalent to about 9 percent of total reserves. Industrial offtake also held up, with technology demand edging 1 percent higher to 82 tonnes as continued investment in artificial intelligence infrastructure supported bonding wire and high-end electronics consumption.
Supply rose by a similar 2 percent year on year to 1,231 tonnes, with modest mine output growth combined with a 5 percent uptick in recycling. The fact that investment demand has now decisively overtaken fabrication marks a meaningful shift for procurement teams in jewellery manufacturing and electronics, who increasingly compete for tonnes against bullion investors and reserve managers operating on different price elasticities. The Council noted that geopolitical risk, particularly the unresolved Iran-related conflict, should continue to underpin investment and central bank flows through 2026, even as higher-for-longer policy rates in Western markets create a partial headwind.
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