The World Gold Council (WGC) reported that total global gold demand, including over-the-counter (OTC) trading, increased 2% year-on-year to 1,231 tonnes in Q1 2026, while the overall value of demand surged 74% to a record $193 billion.

According to the WGC’s Q1 2026 Gold Demand Trends report, rising gold prices and geopolitical uncertainty drove strong investment demand across major markets. Global bar and coin demand increased 42% year-on-year to 474 tonnes, led by China, where demand rose 67% to a record 207 tonnes. India, South Korea and Japan also recorded higher investment buying. Physically-backed gold ETFs remained positive during the quarter, with global holdings increasing by 62 tonnes. Asian-listed funds added 84 tonnes, although March outflows from US-listed funds moderated overall gains.

In contrast, global jewellery demand declined 23% year-on-year to 300 tonnes due to elevated gold prices. China recorded a 32% decline, India fell 19%, and the Middle East declined 23%. Despite lower volumes, jewellery demand values increased across markets, indicating continued consumer spending on gold products at higher price levels. The report noted that some jewellery consumption shifted towards bar and coin purchases, particularly in China and India, where gold jewellery also functions as an investment product.

In India, total gold demand rose 10% year-on-year to 150.6 tonnes during Q1 2026, while demand value nearly doubled to Rs 2,27,530 crore. Jewellery demand declined to 66.1 tonnes from 81.6 tonnes a year earlier, although jewellery demand value increased 47% to Rs 99,920 crore. Investment demand in India remained strong, with bar and coin demand rising 34% to 62.3 tonnes. Gold ETF demand increased 197% year-on-year to 19.9 tonnes. Recycling activity also rose 20% to 31.2 tonnes, while imports increased 39% to 196.4 tonnes.

Louise Street, Senior Markets Analyst at the World Gold Council, said, “The combination of price momentum and heightened geopolitical risk propelled investment demand, most notably in Asia, as investors sought security in physical gold.”

Sachin Jain, Regional CEO, India, World Gold Council, said, “India’s gold market in Q1 2026 reflects a continued divergence between volume trends and value growth, shaped by record-high prices and evolving consumer preferences.”