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Gold Demand Hits Record Value as Investment and Central Banks Redraw the Market

Price swings redirected buying toward investment products.

Overview

  • The World Gold Council’s report released Wednesday put Q1 demand at 1,231 tonnes, up 2% by volume but a record $193 billion by value after prices hit a January peak near $5,600 and then fell in March.
  • Bar and coin buying jumped 42% to 474 tonnes, the second strongest quarter on record, led by Asian investors with standout gains in China, India and Singapore.
  • Central banks added a net 244 tonnes to reserves, with disclosed purchases by Poland, Uzbekistan and China outweighing sales from Turkey, Russia and Azerbaijan.
  • Physically backed gold ETFs recorded a net 62‑tonne increase for the quarter, supported by Asia‑listed funds even as US funds saw heavy March outflows.
  • Jewellery demand fell 23% to 300 tonnes as high prices cut volumes, and India logged a first with investment at 82 tonnes topping jewellery at 66 tonnes in the March quarter.