Singapore’s gold demand jumps record 42% in Q1 amid geopolitical risks, volatile prices
Inflows into Asian-listed gold-ETFs outpace those in other regions, and offset outflows in West
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[SINGAPORE] Investor appetite for gold in Singapore surged to a record high in the first quarter, with demand for bars and coins climbing 42 per cent year on year to 3.5 tonnes.
Global bar and coin demand for the quarter grew 42 per cent to 473.6 tonnes, from 333.6 tonnes in Q1 last year, based on data from the World Gold Council’s (WGC) Gold Demand Trends Q1 2026 report released on Wednesday (Apr 29).
Meanwhile, gold-backed exchange-traded fund (ETF) demand increased by 62 tonnes in Q1 2026, a 73 per cent decline from the 229.9 tonnes added in the previous corresponding quarter.
The yellow metal peaked near US$5,500 per ounce in January before retreating in March as its safe-haven appeal gave way to liquidity needs amid the Middle East conflict. It was trading at around US$4,600 per ounce as at 1.10 pm on Wednesday.
However, Asian-listed gold-ETFs added 84 tonnes during the quarter. This was higher than in every other region, as Western funds saw outflows, noted Fan Shaokai, head of Asia-Pacific (excluding China) and global head of central banks at WGC.
“Investors across the region are responding to the same combination of geopolitical uncertainty, trade risk and price momentum driving demand globally, but the Asia-Pacific response this quarter has been particularly pronounced,” he said.
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Louise Street, senior markets analyst at WGC, noted: “The combination of price momentum and heightened geopolitical risk propelled investment demand, most notably in Asia, as investors sought security in physical gold.”
Trends in region
Singapore’s interest in bullion was largely mirrored across the region.
In South-east Asia, Malaysia’s gold bar and coin demand grew 57 per cent, followed by Indonesia and Thailand which saw demand climb 47 per cent and 35 per cent, respectively.
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The report noted that Indonesia saw demand double quarter on quarter “as investors sought protection against economic uncertainty and inflation”, while Thailand recorded its strongest Q1 since 2019.
Vietnam, however, bucked the trend as its bullion demand for the quarter declined 24 per cent year on year amid record-high prices and domestic supply constraints, said the report.
In the broader region, China recorded its strongest quarter ever, with physical gold demand rising 67 per cent year on year to 206.9 tonnes.
“The elevated gold price, and particularly its performance relative to other local assets, continued to drive demand (in China), with further impetus coming from heightened trade risks and global geopolitical tensions,” noted the report.
Global central banks purchased an estimated 243.7 tonnes of gold in the quarter, a 3 per cent year-on-year increase despite an uptick in selling activity during the quarter, added the report.
Meanwhile, appetite for gold jewellery softened globally as consumers were “somewhat at the mercy of the gold price”.
Gold jewellery consumption in Singapore fell 13 per cent year on year to 1.5 tonnes.
Street added: “Looking ahead, the geopolitical risk premium should continue to support investment demand, though higher-for-longer interest rates may present headwinds, especially in Western markets.”
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