SINGAPORE – Singapore residents are snapping up gold bars and coins at a record pace, even as prices have been volatile amid geopolitical tensions linked to the Iran war and expectations of elevated interest rates to curb inflation.
Demand for gold bars and coins in the Republic rose 42 per cent year on year to 3.5 tonnes in the first quarter of 2026 – the highest on record.
In contrast, demand for gold jewellery fell 13 per cent year on year to 1.5 tonnes in the same period, as record prices weighed on volumes.
For the whole of 2025, demand for gold bars and coins rose 48 per cent to 9.6 tonnes from 2024, while gold jewellery demand fell 13 per cent to 6 tonnes, according to an April 29 report by the World Gold Council (WGC).
Mr Shaokai Fan, head of Asia-Pacific (ex-China) and global head of central banks at the WGC, said that gold investment demand in Singapore typically mirrors broader trends.
“Residents in Singapore responded to rising global uncertainty and a desire to diversify their portfolios, similar to the trends that influenced other markets as well,” he said.
“As geopolitical tensions continue to mount, we expect interest toward gold in Singapore and globally to remain supported.”
Gold ended 2025 just above US$4,500 (S$5,748) an ounce and surged to a record high of above US$5,589.38 in January. It was trading near US$4,600 on April 29.
A stronger US dollar has made the precious metal more expensive for buyers using other currencies, dampening demand.
Expectations that US interest rates would be cut have also cooled, pushing bond yields higher and weighing on gold, which typically performs better in a low-rate environment.
The WGC said that globally, demand for gold bars and coins rose 42 per cent to 474 tonnes in the first quarter of 2026, the second-highest quarter on record, led by strong demand from investors in Asia,
Gold jewellery demand in value terms also increased, indicating consumer willingness to spend on gold despite record prices. But some demand has shifted to bars and coins, particularly in markets like China and India, where jewellery also serves as an investment.
Total gold demand in the first quarter of 2026, including over-the-counter trades, reached 1,231 tonnes, up 2 per cent year on year. In value terms, demand surged 74 per cent to a record US$193 billion.
The WGC said the “geopolitical risk premium” that has supported gold in recent years is likely to persist, and could widen as the year progresses.
Uncertainty over the new chairman of the US Federal Reserve, including the timing of the confirmation, as well as strained US-China relations, could continue to support prices.
“While questions have been raised about gold’s lack of positive response to the war in the Middle East thus far, this initial move is not unprecedented,” said the WGC.
“However, we would expect a prolonged conflict or a wider spill-over effect on the global economy to provoke a more visible positive reaction from gold.”
Central banks continued to support overall demand, adding 244 tonnes to global reserves in the first quarter, said the WGC.
Purchases exceeded both the previous quarter and the five-year average, despite some selling by a number of central banks, including those in Turkey and Russia.
One notable buyer was the People’s Bank of China, which added 7 tonnes of gold to its reserves in the first quarter, more than double the 3 tonnes purchased in the previous quarter. This brought its total holdings to 2,313 tonnes, or about 9 per cent of its reserves.
China’s central bank has extended its gold-buying streak to 17 consecutive months as at April 2026.
The Monetary Authority of Singapore currently holds 6,229,546 troy ounces, or roughly 193,761 kg of gold, according to its website.
