Total global gold demand, including over-the-counter (OTC) investment, reached 1,231 tonnes in Q1 2026, a 2% increase year-over-year, according to the World Gold Council's Gold Demand Trends report published April 29, 2026. While volume growth was modest, the value of quarterly demand surged 74% to a record US$193 billion, reflecting gold's exceptional price strength during the period.
Bar and coin demand jumped 42% year-over-year to 474 tonnes in Q1 2026 — the second-highest quarterly total on record, surpassed only by Q2 2013. The surge was driven primarily by Asian investors. Asian-listed gold ETFs added 84 tonnes over the quarter, contributing to total global ETF inflows of 62 tonnes. India's gold demand rose 10% year-over-year to 151 tonnes, with investment demand surging 54% to 82 tonnes — surpassing jewellery demand for the first time ever in the country.
Investment demand now substantially exceeds fabrication demand, marking a structural shift in gold's demand composition. Two decades ago, jewellery fabrication accounted for approximately 800 tonnes of Q1 demand; by Q1 2026, that figure had contracted to 335 tonnes as record gold prices pushed jewellery volumes down 23% year-over-year. However, jewellery spending actually rose 31%, signalling continued strong consumer sentiment toward gold even at elevated prices.
Central banks purchased a net 244 tonnes (+3% YoY) in Q1 2026, while gold-backed ETFs saw net inflows of 62 tonnes — though this was down sharply from Q1 2025's blistering 230 tonnes of inflows, as US-listed funds recorded outflows in March. The WGC noted that "gold's volatility has markedly increased in 2026, with prices peaking above US$5,400/oz in January before a significant but contained correction."
The composition of demand continues its multi-year transformation. Supply grew modestly at 2% year-over-year to 1,231 tonnes, with mine production edging higher and recycling increasing 5%. The WGC's outlook states that geopolitical factors are expected to remain "front and centre in driving gold demand for 2026 and beyond," supporting continued central bank net buying, ETF inflows, and bar/coin accumulation.
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Why It Matters: The gold market is undergoing a fundamental demand transformation. Asian physical investors and sovereign buyers now dominate, replacing the jewellery-led and Western speculative demand patterns of prior decades. At $193 billion in quarterly demand value — a 74% year-over-year increase — gold's role as a strategic portfolio asset has never been more pronounced.