In the January-March quarter of 2026, global gold demand increased by 2% year-on-year, reaching 1,231 tonnes, according to the World Gold Council (WGC). This rise was primarily driven by a substantial 42% increase in bar and coin investments, totaling 474 tonnes, as geopolitical tensions and rising prices attracted retail investors. The total value of gold demand surged to a record $193 billion, reflecting an 81% increase in average gold prices, which reached $4,873 per ounce. Notably, demand for bar and coin purchases in China soared by 67% to a record 207 tonnes, while other markets, including India, South Korea, and Japan, also contributed to the demand growth. Conversely, jewelry demand saw a sharp decline of 23% to 300 tonnes, with significant reductions in major markets like China and India. Despite this, the value of jewelry demand increased, indicating consumers' willingness to invest in gold despite high prices. Central banks, including the Reserve Bank of India, continued to bolster demand by adding 244 tonnes to their reserves. Overall, gold supply also rose by 2%, with mine production reaching a record high for the quarter. Analysts suggest that geopolitical risks will likely continue to support investment demand, although high interest rates may pose challenges ahead.