Global Gold Demand Soars to Record $193,000,000,000 As Trade Group Says Geopolitical Risk Premium To Continue Raising Demand
The demand for gold in the first quarter of 2026 saw a significant increase, driven by a surge in the price of the precious metal, according to a recent report from the World Gold Council. The report highlights that gold demand by volume rose by a staggering 74% to reach $193 billion in the first quarter of the year.
Breaking down the demand on a sector-by-sector basis, the report reveals that the demand for gold bars and coins experienced a remarkable 42% increase, reaching 474 tons. This marks the second-largest quarterly increase in history. Central banks also contributed to the rise in demand, with gold purchases totaling 244 tons in the first quarter. Additionally, the purchase of gold for technological purposes increased by 1% to reach 82 tons. However, the demand for gold for jewelry purposes declined as investors favored gold as an investment option over fabrication.
Looking ahead, the World Gold Council predicts that the geopolitical risk premium that has been supporting the price of gold in recent years will continue to grow throughout the year. The demand for gold is expected to come from both individual and institutional investors, with a particular focus on gold exchange-traded funds (ETFs) and over-the-counter (OTC) markets. While the demand for ETFs and OTC may be positive, it is anticipated to be lower than in 2025. On the other hand, bar and coin demand is likely to see an uptick in 2026 as high prices, limited alternative investment options in certain markets, inflation concerns, and increased uncertainty attract both savers and speculators.
Central bank buying is also projected to remain strong, with levels expected to be similar to those in 2025. Despite price volatility, the demand for gold shows resilience, and continued geo-economic risks could provide further upside potential. However, the report notes that the periodic mobilization of gold reserves in response to supply shocks cannot be ruled out.
In conclusion, the outlook for the demand for gold remains positive, with a continued focus on geopolitical factors and investment opportunities driving the market. Investors are advised to stay informed and vigilant in the evolving landscape of the gold market.
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