Global demand for gold reached a new quarterly peak in Q1 2026, the World Gold Council (WGC) reported on Wednesday, with total demand including over-the-counter bullion increasing 2% year-on-year to 1,230.9 tonnes.
WGC analysts led by Louise Street said that the modest rise in volumes, combined with a sharp increase in gold prices, produced a 74% jump in the monetary value of quarterly demand to a record US$193 billion. "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," the analysts wrote.
Investment in physical metal was a notable contributor. Bar and coin demand reached 474 tonnes, up 42% year-on-year and marking the second highest quarter on record, the WGC said. The council added that Asian investors were particularly active, "hoovering up gold investment products."
Despite the year-on-year increase, the headline demand figure declined 6% compared with the previous quarter, underscoring the volatility the market experienced in the period.
Price action in Q1 was dramatic. Spot gold initially surged, rising nearly 30% to an intraday record of $5,595.46 per ounce on January 29. That advance followed an exceptional 2025, when spot prices rose 64.5%, the WGC said, characterising 2025 as the metal's strongest annual performance since 1979. The council attributed the price run-up to a combination of safe-haven buying amid rising geopolitical risks and tariff uncertainty, softer interest-rate expectations, elevated central bank purchases and flows into bullion-backed exchange-traded funds.
Exchange-traded fund flows showed continuing, but slower, appetite for physically backed products. "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.
Official sector activity also remained prominent. Central banks were net buyers of gold, with net purchases of 244 tonnes in Q1, equivalent to a 3% year-on-year rise, the council said, even as it observed a visible increase in selling activity during the quarter.
Not all demand categories expanded. Jewellery demand fell sharply as prices reached record levels early in the quarter, slipping 23% year-on-year to 335 tonnes, the report found.
Monthly price swings added to the quarter's turbulence. After retreating from record highs in February while still posting an 8.5% gain for the month, gold plunged late in the month when, according to the WGC report, the U.S. and Israel launched a joint assault on Iran at the end of February. That sell-off continued into March, producing the metal's worst monthly performance in over a decade.
Looking ahead, the WGC analysts said geopolitical factors are expected to remain "front and centre in driving gold demand for 2026 and beyond." They said those dynamics underlie continued central bank net buying, broad global gold ETF inflows and further accumulation of bars and coins. The analysts also expected recycling to show a restrained increase in 2026 and for high prices to continue weighing on jewellery consumption. Finally, they noted that mine supply is likely to edge higher in response to elevated prices and margins.
Summary of Q1 2026 gold demand:
- Total demand including OTC bullion: 1,230.9 tonnes (up 2% Y/Y)
- Quarterly value of demand: record US$193 billion (up 74%)
- Bar and coin demand: 474 tonnes (up 42%), second highest quarter on record
- Gold-backed ETF net inflows: +62 tonnes in Q1 (down from +230t in Q1 2025)
- Central bank net purchases: 244 tonnes (up 3% Y/Y)
- Jewellery demand: 335 tonnes (down 23% Y/Y)
The WGC report paints a picture of a market buoyed by investment and official-sector demand but affected by sharp price volatility and shifting flows across investment vehicles.