Gold demand surged in the first quarter of 2026, driven by a rise in the price of the precious metal, as reported by the World Gold Council.
The report reveals that gold demand by volume saw a 74% increase, reaching $193 billion in the same period.
Specifically, the demand for gold bars and coins rose by 42% to 474 tons, marking the second-largest quarterly increase ever recorded. Central banks purchased 244 tons of gold during the first quarter, while the tech sector saw a 1% rise in gold purchases to reach 82 tons. However, demand for gold in jewelry declined as investment took precedence over fabrication.
According to the World Gold Council, the geopolitical risk premium supporting gold prices is expected to persist and potentially expand throughout the year.
The Council anticipates that demand for gold will continue to come from both individual and institutional investors.
“As a result, demand for gold exchange-traded funds (ETFs) and over-the-counter market (OTC) may see a positive trend, albeit lower than in 2025. Bar and coin demand, on the other hand, is likely to play a more significant role in 2026 due to high prices, limited alternative investments in some markets, inflation concerns, and increased uncertainty attracting both savers and speculators…
…Central bank buying is expected to remain strong, similar to levels seen in 2025. Despite price volatility, the demand for gold shows resilience, and ongoing geopolitical risks could offer further upside potential. However, the periodic mobilization of gold reserves in response to supply shocks cannot be ruled out.”
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