High Gold Prices Reduce Bullion Demand Among Non-Investors
Surging gold prices in early 2026 significantly weakened non-investment demand for the metal, particularly in the jewelry sector. As gold prices climbed above $5,000 per ounce for the first time, many consumers reduced purchases of gold for personal and decorative use. Reports from the World Gold Council indicate that jewelry demand, together with industrial and technological use, dropped sharply during the first quarter of the year. Excluding recycled gold and scrap sales, global non-investment demand fell to just above 50 tons, marking one of the weakest quarterly performances outside the Covid-19 lockdown period of 2020. Despite the decline in consumer use, investment demand for gold remained strong. Purchases…