Gold Remains Sought After, Global Demand Rises Amid High Prices

JAKARTA - Global gold demand in the first quarter of 2026 showed diverse dynamics amid price surges and global uncertainties. The latest World Gold Council (WGC) report recorded total worldwide gold demand at 1,231 tonnes for the period from January to March 2026, up slightly by about 2 per cent year-on-year (yoy). In value terms, the demand surged to a new all-time high of $193 billion, reflecting the elevated gold prices throughout the first quarter of 2026. The report indicates that the global gold market continues to be supported by investment demand and central bank purchases, although pressure from high prices is beginning to erode consumption in some sectors. According to the WGC report, the investment sector remained the primary driver of global gold demand, despite experiencing a slight annual decline. The institution noted that gold investment demand fell 5 per cent (yoy) to 536 tonnes in the first quarter of 2026. Conversely, demand via exchange-traded funds (ETFs) experienced a slowdown. ETF outflows, particularly from the United States (US) in March 2026, reversed the inflows seen at the start of the quarter. “Strong investment demand in Asia offset Western ETF outflows in the first quarter,” stated the WGC, reflecting a geographical shift in sources of gold investment demand. The robust demand from the Asian region served as a balancing factor against weakening investor interest in Western markets. In China, for example, gold jewellery demand dropped 32 per cent (yoy) to 85 tonnes in the first quarter of 2026. The WGC report mentions that high gold prices were the main factor in this decline, alongside weakening consumer confidence and less robust real income growth. Additionally, changes to value-added tax (VAT) policies on gold jewellery in China further pressured demand.