Asian Institutions Drive Gold Demand Shift

Asia's gold market is undergoing a significant shift, driven by institutional conviction and physical infrastructure investment. The region accounts for approximately 60% of global consumer gold demand, with China and India serving as twin pillars supporting the entire demand architecture.

The past several years have seen a pronounced pivot toward investment-grade gold products: physical bars, coins, custody accounts, and exchange-traded funds. This transition matters because investment demand behaves differently from jewellery demand.

According to data from the first half of 2026, Asia's share of global consumer gold demand is rising, while record H1 ETF inflows from Asian-based funds accumulated over 74 tonnes of gold, valued at $12 billion and representing the highest regional H1 ETF inflow on record.