Total Q1 gold demand, including OTC, was 2% higher y/y at 1,231t. 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. 

Bar and coin demand of 474t (+42%) was the second-highest quarter on record. Asian investors led the charge, hoovering up gold investment 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 US funds in March.

Amid record high gold prices, jewellery demand volumes remained under pressure (-23% y/y), while levels of spend again increased (+31%), signalling continued positive sentiment towards gold jewellery. 

Central banks bought 244t (+3% y/y) of gold on a net basis in Q1 despite a visible uptick in selling activity during the quarter.  

Demand for gold used in technology edged 1% higher to 82t, fuelled largely by the continued growth in AI infrastructure.

Highlights

• The LBMA (PM) gold price set a new quarterly average record of US$4,873/oz. The price hit a historical high of US$5,405/oz in January, followed by a notable correction. During Q1, the gold price returned 6%.
• The supply of gold increased in Q1 by 2% y/y to 1,231t. Modest growth in mine production, together with a 5% uptick in recycling, generated the increase.
• Investment demand now far exceeds fabrication. Weaker jewellery demand alongside growing investor interest in gold has changed the composition of demand in recent years.

Outlook

• Geopolitics remain front and centre in our outlook for gold demand in 2026. Our view remains that investment and central bank demand will be supported by ongoing geopolitical risk, with further investment impetus from elevated inflation and persistent high gold prices. Jewellery demand will remain under pressure for similar reasons, albeit that spending will likely remain resilient.