AI Infrastructure Drives Gold Electronics Demand Amid Smartphone Slump
Gold demand from the electronics sector rose to 68.3 tonnes in Q2 2026, marking a 4% year-over-year increase. The growth was driven by artificial intelligence (AI) infrastructure spending on server mainboards, integrated circuit substrates, and printed circuit boards for low-earth orbit satellites.
The AI memory demand surge also contributed to the rise in gold usage, particularly in chipmaker valuations. Additionally, automotive lighting added more gold wire and gold-tin bonding, as durable materials are required for vehicle head and tail lamps due to heat and vibration.
However, the consumer end moved in the opposite direction, with IDC forecasting a 13.9% decline in smartphone shipments in 2026 to 1.09 billion units. This would be the steepest annual drop recorded by the market.
The World Gold Council warns that weaker AI returns or an electronics downturn could remove the support carrying gold through the handset slump, posing downside risk to adoption and price.