image sourced from original article at Gold demand is expected to remain strong through 2026, driven largely by ongoing geopolitical tensions, particularly the conflict in the Middle East. The World Gold Council said continued central bank purchases, investment fund inflows, and sustained buying of bars and coins will underpin demand, reinforcing gold’s role as a strategic store of value amid uncertainty and inflation concerns.
Gold prices surged above 5,000 dollars per ounce during the early days of the Iran war before retreating to around 4,500 to 4,700 dollars in late April, pressured by a stronger United States dollar and rising oil-related inflation. Despite price volatility, geopolitical risk is expected to continue supporting investment and official sector demand in the coming year.
Higher prices are weighing on jewelry consumption, while mine supply is projected to rise modestly in response to improved margins. Overall demand in the first quarter increased 2 percent year on year to 1,231 tonnes, with the total value jumping 74 percent to a record 193 billion dollars. Bar and coin demand rose 42 percent, led by strong buying in Asia.
