LONDON, May 1, 2026 – The World Gold Council released its Gold Demand Trends report for the first quarter of 2026, showing a market driven by record-high prices and significant investment. Total global gold demand grew two percent compared to the same period last year. This brought the total volume to 1,231 tonnes. While the volume growth was relatively modest, the financial value of that gold told a different story. The total value of quarterly demand skyrocketed 74 percent to reach a record 193 billion dollars.
Investors looking for physical gold were a primary force behind these numbers. Demand for gold bars and coins rose 42 percent to reach 474 tonnes. This is the second-highest quarterly total for bar and coin demand on record. Investment demand showed a solid recovery from recent quarters, even though it remains below peak levels seen between 2020 and 2022. Looking forward, analysts project that physical bar and coin buying may remain resilient, especially in Asia.
Central banks also continued to be major players in the market. These institutions bought a net total of 244 tonnes of gold during the first quarter. This represents a three percent increase compared to the first quarter of 2025. Major buyers included China, India, Turkey, and several other emerging market central banks. The World Gold Council stated that central banks now hold gold as a core reserve asset rather than a peripheral holding. They are using gold as a strategic response to elevated global debt levels, currency risk, and geopolitical fragmentation.
While investment was up, the high price of gold weighed heavily on other sectors. Jewelry demand dropped 23 percent, showing that record prices are squeezing traditional buyers. Higher prices weighed on consumption in key markets like India and China, though cultural and festival-driven buying provided some offset. Despite the drop in volume, overall spending levels remained relatively resilient. Technology demand grew modestly to 107 tonnes, supported by continued growth in electronics, medical, and other industrial applications.
The prices for the metal reached several new milestones. The LBMA gold price averaged a record 4,873 dollars an ounce in the quarter, hitting a record high of 5,405 dollars before pulling back. Historically, gold reached an all time high of 5,608.35 in January of 2026. By May 1, 2026, gold fell to 4,571.84 dollars per ounce. Gold steadied above 4,600 dollars an ounce on that Friday after rising nearly two percent in the prior session, supported by a sharp depreciation in the US dollar following reports that Japan intervened in currency markets.
The macroeconomic background remained complex during this period. The United States Federal Reserve left its policy settings unchanged as widely expected, although four officials dissented. The federal funds interest rate was recorded at 3.75 percent. While high interest rates and firmer yields can make gold less attractive, the metal maintained its strength. Geopolitical tensions, including the ongoing conflict with Iran and disruptions in the Strait of Hormuz, unsettled global markets. The resulting energy supply disruption heightened inflation concerns. This risk premium helped lift gold prices.
On the supply side, mine production is only expected to rise modestly in 2026, while recycling is picking up again. If prices stabilize, the recycling jump is more than a one-quarter event. Meanwhile, traders dialed back expectations for rate cuts this year and began pricing in the possibility of a hike in 2027. Wall Street firms issued updated price targets, with Wells Fargo Investment Institute projecting 6,100 to 6,300 dollars by the close of the year, and Commerzbank forecasting 5,000 dollars by year-end 2026.
Sources
World Gold Council (Published/Updated: April 29, 2026)
The Street (Published/Updated: April 30, 2026)
Trading Economics (Published/Updated: May 1, 2026, 12:45 GMT)
Canadian Mining Report (Published/Updated: April 30, 2026)
