29 April, 2026
| Tonnes | Q1'25 | Q1'26 | y/y % change | |
| World total | 391.2 | 299.7 | -23 |
|
| India | 81.6 | 66.1 | -19 |
|
| China, P.R.: Mainland | 124.9 | 85.2 | -32 |
|
Jewellery demand sank to its lowest quarter since Covid, dipping below 300t (albeit fractionally) for only the second time in our data series. In contrast, demand value increased 31% y/y to US$47bn – a record first quarter spend on gold jewellery.
In a continuation of the recent theme, gold jewellery consumers were somewhat at the mercy of the gold price. Demand was strangled by the price rise to record highs in January – even after its subsequent correction gold remained above prior historical levels.
This has been reflected in the evolving shape of global demand, with fabrication (jewellery and technology) yielding market share to investment (Chart 4).
China started 2026 on a weak footing: jewellery demand was down 32% y/y to 85t. The gold price was the key factor behind the drop, but demand was further undermined by relatively weak consumer confidence and lacklustre real income growth. The change in the VAT treatment of gold jewellery introduced in Q4 was a further deterrent.
But important to note is the 16% y/y increase in spending on gold jewellery, to US$13bn. This reveals the commitment Chinese consumers have to gold, even though high prices are diverting them to smaller or lighter-weight pieces.
Some jewellery demand was redirected to lower-premium investment products, particularly as these are excluded from the increased VAT burden. This also helps explain a rise in ‘old for new’ jewellery in Q1.
Although demand was subdued, Hard Pure Gold jewellery performed comparatively well, boosted by the relative affordability of these lighter-weight ranges, particularly among younger consumers who also appreciate design innovation. Meanwhile, demand for high-end, heritage gold jewellery was fairly resilient among higher-income consumers attracted by the intricate handcrafting and elevated retail experience associated with such products.
Gold jewellery demand will likely remain subdued in the seasonally off-peak second quarter. But consumer sentiment could improve as buyers adjust to the new VAT regime and the higher price environment, while potential rate cuts could further support discretionary spending.
Record gold prices continued to take their toll on Indian gold jewellery consumption in Q1. Nevertheless, in the context of an 81% y/y rise in local gold prices, demand could be described as resilient – an observation supported as demand reached US$10bn in value terms, a record for a first quarter.
In the record price environment Indian consumers continued their shift towards more affordable lighter-weight jewellery, with lower carat products also increasing their share of inventories, particularly at larger chain stores.
However, a clear divergence remains between mass market and high-end jewellery: high income customers continued to buy heavier pieces regardless of the price, while customers in the mass market cut back, either by reducing their purchases or shifting to lower-carat, lighter-weight or studded items to offset the price impact.
Other potential jewellery buyers may have instead switched to gold bars or coins as they carry lower premiums than jewellery.
Exchange of old gold jewellery for new accounted for a sizable share of activity in the market during the quarter, while the trend for borrowing against gold jewellery also remained firmly in place: outstanding retail bank loans backed by gold jewellery were valued at INR4.3tn as at the end of February, up 124% y/y.
Middle Eastern markets saw universal double-digit y/y declines in Q1 gold jewellery demand. But this contrasted with a 30% y/y increase in value to a record US$5bn.
Ramadan and Eid in February offered some support to gold jewellery demand, but the combination of record gold prices and the subsequent outbreak of war in the region brought demand in some markets close to a standstill.
Record demand values were also seen in Turkey in Q1, despite continued weakness in gold jewellery volumes. Demand was constrained by high and volatile gold prices, along with persistently high domestic inflation, while consumer sentiment was subdued by regional and global geopolitical uncertainty.
The impact of tariffs on top of the record gold price created significant affordability barriers for US jewellery consumers in Q1. The US was notable for being one of the few markets to register a y/y drop in the value of demand.
Demand weakness was reflected in a sharp fall in gold jewellery imports, as customers reduced the frequency of purchases and shifted to lighter-weight pieces.
European demand was very much in line with the global pattern: volumes down – reflecting lower fine-weight purchases – and value up as spending on gold jewellery increased due to higher prices.
High prices encouraged a shift to lower-carat jewellery and investment products across the ASEAN countries for which we report individual gold demand data. Demand volumes were consequently very subdued across all four markets, whereas values increase – most notably in Vietnam, which hit a record US$472mn. This was likely due in part to bottlenecks in the supply of gold bars, which funnelled demand towards chi rings as an investment proxy.
Q1 gold jewellery demand in Japan was in line with that of Q1’25. Purchases of quasi-investment gold chains and ornaments helped to insulate Japan from the widespread losses seen in most other markets.
Push and pull dynamics were evident in South Korea in Q1. A recovery in wedding-related demand provided support, but this was countered by a continued shift towards low-carat products, which pushed demand slightly lower. Value, however, shot up to a quarterly record of US$603mn.
High prices weighed down gold jewellery demand in Australia in Q1, which declined broadly in line with the global total.
| Q1'25 | Q2'25 | Q3'25 | Q4'25 | Q1'26 | q/q % change |
y/y % change |
|
| India | 81.6 | 88.8 | 125.0 | 145.3 | 66.1 | -55 | -19 |
| Pakistan | 4.2 | 4.1 | 3.7 | 3.9 | 3.5 | -10 | -15 |
| Sri Lanka | 1.0 | 1.2 | 1.0 | 0.9 | 1.1 | 21 | 9 |
| Greater China | 132.5 | 73.8 | 90.7 | 89.0 | 91.2 | 2 | -31 |
| China, P.R.: Mainland | 124.9 | 69.2 | 84.1 | 81.9 | 85.2 | 4 | -32 |
| Hong Kong SAR | 6.4 | 3.7 | 5.8 | 6.2 | 4.8 | -22 | -25 |
| Taiwan Province of China | 1.2 | 0.9 | 0.8 | 0.9 | 1.1 | 25 | -10 |
| Japan | 3.0 | 3.0 | 3.3 | 4.0 | 3.0 | -26 | 0 |
| Indonesia | 4.1 | 3.3 | 3.8 | 5.4 | 3.3 | -39 | -20 |
| Malaysia | 3.8 | 2.5 | 2.3 | 2.4 | 2.9 | 24 | -23 |
| Singapore | 1.7 | 1.5 | 1.4 | 1.4 | 1.5 | 7 | -13 |
| Korea, Republic of | 4.1 | 2.6 | 2.5 | 2.4 | 3.9 | 60 | -5 |
| Thailand | 1.8 | 1.6 | 2.1 | 2.3 | 1.7 | -27 | -5 |
| Vietnam | 3.5 | 2.5 | 2.2 | 2.4 | 3.0 | 28 | -14 |
| Australia | 1.9 | 1.1 | 1.8 | 2.3 | 1.5 | -32 | -20 |
| Middle East | 45.1 | 39.8 | 33.4 | 35.0 | 34.5 | -2 | -23 |
| Saudi Arabia | 14.6 | 11.2 | 9.3 | 9.0 | 12.7 | 41 | -13 |
| UAE | 7.9 | 7.7 | 6.4 | 7.5 | 4.7 | -37 | -40 |
| Kuwait | 2.4 | 2.7 | 2.4 | 2.8 | 1.8 | -35 | -25 |
| Egypt | 6.4 | 5.7 | 4.4 | 5.1 | 5.2 | 0 | -19 |
| Islamic Republic of Iran | 7.2 | 7.3 | 6.5 | 5.4 | 5.0 | -8 | -31 |
| Other Middle East | 6.6 | 5.2 | 4.4 | 5.1 | 5.1 | -1 | -23 |
| Turkey | 8.9 | 9.0 | 7.1 | 7.7 | 6.8 | -11 | -23 |
| Russian Federation | 7.5 | 8.0 | 10.1 | 11.0 | 6.7 | -39 | -10 |
| Americas | 31.7 | 39.8 | 34.2 | 49.8 | 21.1 | -58 | -34 |
| United States | 23.3 | 29.5 | 25.3 | 36.7 | 13.1 | -64 | -44 |
| Canada | 2.6 | 3.0 | 2.4 | 4.4 | 2.2 | -52 | -16 |
| Mexico | 2.8 | 3.2 | 3.2 | 3.7 | 2.8 | -23 | 0 |
| Brazil | 3.1 | 4.0 | 3.3 | 5.0 | 3.0 | -40 | -3 |
| Europe ex CIS | 10.0 | 13.9 | 12.0 | 23.5 | 8.3 | -65 | -16 |
| France | 2.3 | 2.4 | 2.2 | 5.0 | 2.0 | -59 | -12 |
| Germany | 0.9 | 2.3 | 1.9 | 3.3 | 0.9 | -73 | -6 |
| Italy | 2.3 | 3.6 | 2.5 | 6.2 | 1.4 | -77 | -39 |
| Spain | 1.9 | 2.0 | 1.9 | 2.5 | 1.8 | -26 | -4 |
| United Kingdom | 2.5 | 3.6 | 3.5 | 6.5 | 2.1 | -67 | -12 |
| Switzerland | - | - | - | - | - | - | - |
| Austria | - | - | - | - | - | - | - |
| Other Europe | - | - | - | - | - | - | - |
| Total above | 346.4 | 296.4 | 336.4 | 388.8 | 260.2 | -33 | -25 |
| Other & stock change | 44.8 | 41.3 | 41.5 | 48.2 | 39.6 | -18 | -12 |
| World total | 391.2 | 337.7 | 377.9 | 437.0 | 299.7 | -31 | -23 |
Source: Metals Focus, Refinitiv GFMS, ICE Benchmark Administration, World Gold Council
