Gold Demand Hits $193B in Q1 2026 as Geopolitical Risk Premium Persists

Global gold demand surged in the first quarter of 2026, with volume increasing 74% to reach $193 billion, according to a World Gold Council report. The increase was driven by both price appreciation of the yellow metal and heightened investor interest amid geopolitical uncertainty.

Sector-by-Sector Demand Breakdown

Demand varied significantly across gold's end-use categories in Q1 2026:

• Bars and Coins: Demand rose 42% to 474 tons, marking the second-largest quarterly increase on record. This category saw particular strength as investors sought physical holdings.
• Central Bank Purchases: Central banks accumulated 244 tons of gold during the quarter, continuing their pattern of accumulation.
• Technology: Gold demand for industrial and technology purposes increased 1% to 82 tons.
• Jewelry: Demand for jewelry fell as the composition of overall demand shifted toward investment over fabrication.

Geopolitical Risk Premium and Forward Outlook

The World Gold Council attributed sustained demand to geopolitical factors, stating that "the geopolitical risk premium that has helped lift gold over the past few years is set to continue and possibly expand as the year progresses."

The council expects demand to continue from both individual and institutional investors throughout 2026, with the following sector-specific forecasts:

ETFs and OTC Markets: Demand for gold exchange-traded funds and over-the-counter market products is expected to be positive but lower than 2025 levels.

Bars and Coins: "Bar and coin demand, on the other hand, is likely to feature more in 2026 as high prices, a lack of viable alternative investments in some markets, inflation fears and heightened uncertainty continue to attract both savers and speculators," according to the World Gold Council.

Central Bank Buying: "Central bank buying is expected to be solid at levels close to those in 2025. Demand shows good traction despite price volatility and continued geo-economic risks could provide additional upside. However, periodic mobilization of gold reserves on further supply shocks cannot be discounted," the council stated.