Record Gold Prices Fuel Sharp Decline in Jewelry Demand

Gold prices have surged to record highs, causing global gold jewelry demand to plummet to its lowest level since the pandemic. According to Metals Focus, this decline is projected to reach over one-third from 2023 consumption levels by 2026.

The shift in gold demand dominance from jewelry to bars and coins reflects changing consumer behavior and manufacturing adaptations amid high prices. Despite weaker jewelry demand, overall gold's bull market remains supported by factors such as central bank buying and economic uncertainties, suggesting continued price rallies but further pressure on jewelry volumes.