Mumbai: The World Gold Council’s (WGC) Q1 2026 Gold Demand Trends report reveals that total quarterly gold demand (including OTC) reached 1,231t, a 2% increase year-on-year. While volumes increased modestly, the value of demand surged to a record US$193bn, up 74% year-on-year.

Around the world, retail investors were drawn to gold’s price momentum and safe-haven appeal,driving bar and coin demand up 42% year-on-year to 474t. Demand in China surged 67% year-on-year to a record 207t, considerably higher than the previous quarterly record of 155t in Q2’13. Other Eastern markets, including India, South Korea and Japan, alsosaw an increase in bar and coin buying, contributing to the ongoing structural shift in gold demand. Bar and coin demand was also supported by strong growth in the US and Europe, up 14% and 50% respectively.

Physically-backed gold ETF demand remained positive in Q1: holdings increased by 62t, largelysupported by continued strength across Asian-listed funds, which added 84t over the quarter. Sizeable outflows in March, mostly from US listed funds, tempered what had been a very strong start to the year.

In contrast, jewellery demand declined sharply, falling 23% year-on-year to 300t in reactionto the higher prices seen throughout the quarter. Demand weakened across all major markets, with notable declines in China (-32%), India (-19%) and the Middle East (-23%). However, in value terms, jewellery demand increased, indicating continued consumer willingnessto spend on gold despite record prices. Market analysis suggests that some jewellery consumption has moved into bar and coin demand, particularly in markets like China and India where jewellery can act as a proxy investment.

Central banks continued to support overall demand, adding 244t to global reserves in thefirst quarter. Purchases exceeded both the previous quarter and the five-year average despite an uptick in selling by a small number of official sector institutions including the Central Bank of the Republic of Türkiye, the Central Bank of the Russian Federationand The State Oil Fund of the Republic of Azerbaijan. Market activity throughout the quarter underscored gold’s unique role as indispensable reserve asset, accessible during times of extreme market turbulence.

Total gold supply increased by 2% year-on-year to 1,231t. Mine production reached a newfirst-quarter record, while recycling increased modestly by 5% despite elevated prices, suggesting a relatively muted supply response and tighter overall market conditions.

Louise Street, Senior Markets Analyst from the World Gold Council, commented, “Gold’s volatility has markedly increased in 2026, with prices peaking above US$5,400/ozin January before a significant but contained correction. The combination of price momentum and heightened geopolitical risk propelled investment demand, most notably in Asia, as investors sought security in physical gold. Alongside this, continued centralbank buying offset tactical selling.

“Looking ahead, the geopolitical risk premium should continue to support investment demand,though higher-for-longer interest rates may present headwinds, especially in Western markets. Jewellery spending is expected to remain resilient even as high prices weigh on volumes. On the supply side, mine production is expected to grow modestly, althoughpotential energy shortages could temper that outlook.”

India Gold Demand Statistics for Q1 2026 (January – March)

• Demand for gold in India for Q1 2026 was at 150.6 tonnes, up by 10% as compared tooverall Q1 demand for 2025 (137.4 tonnes)
• India’s Q1, 2026 gold demand value was Rs. 227,530 crores, up by 99% as compared to Q1 2025 (Rs.114,600 crores)
• Total Jewellery demand in India for Q1 2026 decreased by 19% to 66.1 tonnes as comparedto Q1 2025 (81.6 tonnes)
• The value of jewellery demand increased by 47% at Rs. 99,920 crores, compared to Rs. 68,050 crores recorded in Q1 2025
• Total Bar and Coin demand for Q1 2026 was at 62.3 tonnes, increased by 34% in comparisonto Q1 2025 (46.7 tonnes)
• In value terms, gold Bar and Coin demand in Q1 2026 was Rs. 94,130 crores, up by 142 % from Q1 2025 (Rs. 38,900 crores)

• Total gold ETF demand for Q1 2026 was at 19.9 tonnes increased by 197% in comparisonto Q1 2025 (6.7 tonnes)
  • In value terms, gold ETF demand in Q1 2026 was Rs. 30,000 crores, up by 437 % fromQ1 2025 (Rs. 5,590 crores) 
• Total gold recycled in India in Q1 2026 was 31.2 tonnes, up by 20% compared to 26.0 tonnesin Q1 2025
• Total gold imports in India in Q1 2026 was 196.4 tonnes, up by 39% compared to 141.2tonnes in Q1 2026
• US$/oz average quarterly price in Q1 2026 was US$ 4,873 in comparison to US$ 2,860 in Q1 2025
• INR/10g average quarterly price in Q1 2026 was INR 1,51,105 in comparison to INR 83,375 in Q1 2025 (without import duty and GST)

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-highprices and evolving consumer preferences. Total gold demand for the quarter stood at 150.6 tonnes, marking a 10% increase compared to Q1 2025. In value terms, demand nearly doubled to Rs. 2,27,530 crores, up 99% year-on-year, underscoring the impact of thesharp rise in gold prices.

Jewellery demand faced notable headwinds during the quarter, declining 19% year-on-year to 66.1 tonnes, as elevated pricesand affordability constraints continued to weigh on consumption, particularly in price-sensitive segments. However, the value of jewellery demand remained resilient at Rs. 99,920 crores, reflecting the strong price environment and a gradual shift towards lighterand more value-conscious purchases.

In contrast, investment demand emerged as a key driver of overall growth. Investment demand rose 34% year-on-year to 62.3tonnes, while its value surged 142% to Rs. 94,130 crores. This strong momentum highlights increasing investor confidence in gold as a strategic asset, supported by heightened global uncertainties and its role as an effective hedge against inflation and marketvolatility.

On the supply side, recycling activity also saw an uptick, rising 20% to 31.2 tonnes, as higher prices encouraged partialprofit-taking, although overall sentiment continues to favour holding gold as a long-term store of value.

Looking ahead, while elevated prices may act as a near-term headwind for jewellery demand, the summer weddingseason and regional festivals are expected to provide support, building on the momentum seen during Akshaya Tritiya. At the same time, investment demand is likely to remain resilient, with gold continuing to be viewed as a safe-haven asset and an importantportfolio diversifier amid ongoing global uncertainties. We estimate full year demand to be in the range of 650-750 tonnes.”