Asia's Dominant Role in Gold Demand
Asia and the Middle East together represent approximately 70% of global gold demand by volume. China and India alone account for more than half of worldwide jewellery fabrication. This geographic concentration means Asian macro trends — currency moves, festival calendars, property market health — drive the global gold demand cycle in ways that Western ETF flows cannot fully offset.
Track live regional prices: India · China · Singapore · demand statistics.
China Q1 2026: Bar Buying Offsets Jewellery Softness
Chinese jewellery demand showed some price sensitivity in Q1 2026 as higher gold prices prompted consumers to purchase lighter pieces. However, retail bar and coin investment surged — small 1g and 5g gold bars from commercial banks became bestsellers as households pivoted from property-linked wealth products.
SGE withdrawal data confirmed strong physical uptake. The PBoC also continued official reserve purchases, adding to structural demand. China's combined jewellery plus investment demand remained among the highest in its history.
India: Pre-Festival Restocking Starts Early
Indian importers and fabricators began restocking ahead of the Akshaya Tritiya season, lifting domestic premiums over international spot. Trade body data showed wedding jewellery orders up year-on-year as rural purchasing power improved on higher agricultural prices.
The RBI's gold monetization schemes attracted modest but growing participation, suggesting some increase in formal recycling supply alongside strong import demand. Net demand impact remained strongly positive.
Vietnam, Indonesia, and Southeast Asia
Vietnam maintains a distinct gold market structure with SJC (Saigon Jewellery Company) bars commanding significant domestic premiums — sometimes $100+ over international spot — due to import quotas. Indonesian demand is driven by jewellery and growing investment interest as inflation awareness rises.
Singapore acts as the regional refining and trading hub, facilitating physical flows into Vietnam, Indonesia, and Australia without being a major end-consumer itself.
Gulf: Tourism and Re-Export Demand
Dubai remains a global re-export hub — gold imported for domestic sale and transit to South Asia and Africa. UAE VAT exemptions on investment-grade gold keep bar premiums competitive, attracting international buying from South Asian diaspora communities.
Qatar and Kuwait show stable per-capita jewellery demand. Saudi Arabia's market is large but more policy-sensitive to SAMA-linked financial product regulation. Compare Gulf prices: UAE · Saudi Arabia · Qatar.
Outlook for Asia Gold Demand in H2 2026
Second-half demand should be supported by the Indian wedding and festival season beginning in late Q3 and the year-end Chinese gifting cycle. Central bank purchases are expected to continue from multiple EM buyers. The main risk to Asian demand is a sharp gold price spike above current levels that pushes middle-income buyers to lighter-weight pieces or delays discretionary jewellery purchases.
Monitor country-level flows in gold demand by country and central bank news for official sector updates.