Global Gold Demand Strengthens, Asia Becomes Investment Engine

JAKARTA, KOMPAS.com – Global gold demand in early 2026 is showing increasingly complex dynamics. On one hand, interest in gold as an investment instrument has risen significantly, particularly in the Asian region. On the other hand, gold consumption for jewellery is facing pressure due to a surge in prices reaching record highs. Data indicates that while demand volume remains relatively stable, transaction values have surged sharply alongside the rise in gold prices. Overall, total global gold demand in the first quarter of 2026 reached 1,231 tonnes, up around 2% year-on-year. However, in value terms, this demand set a new record at $193 billion, driven by gold prices at very high levels. The World Gold Council notes that the combination of moderate volume growth and a surge in gold prices is the main factor behind this record value. High gold prices not only boost transaction values but also alter consumer behaviour. In high-price conditions, gold purchases tend to be more selective, especially in the jewellery sector. At the same time, however, investors see this situation as an opportunity to secure assets. Thus, although tonnage growth is relatively limited, the economic value of gold demand has seen significant expansion. One of the main pillars of gold demand in the first quarter of 2026 comes from the investment sector. Gold investment demand was recorded at 536 tonnes, though it saw a slight annual decline of around 5%. This decline was mainly due to weakening demand from exchange-traded fund (ETF) products, particularly in Western markets. However, the ETF decline was offset by a surge in demand for physical gold in the form of bars and coins. Demand in this segment reached 474 tonnes, up 42% year-on-year and one of the highest levels in history.