Gold consumption in electronics jumped 4% in Q1 2026, fueled by soaring demand from AI data centers. According to the World Gold Council, 69.3 tonnes of gold went into electronic components marking the strongest quarterly figure since late 2021.
Unlike previous gold demand drivers like jewelry or central banks, this rise is powered by AI infrastructure. Next-gen chips use more gold to ensure better heat management and signal quality, making the metal essential for AI memory modules and interconnects. tech and industrial gold demand climbed 1% year-over-year to 81.6 tonnes, despite weakness in consumer electronics due to high prices.
Tokenized Gold Gains Momentum
On the crypto front, tokenized gold platforms saw a 30% spike in trading volume, reaching $90.7 billion in the first quarter. More than 44,500 new wallets appeared as investors sought digital access to physical gold without the hassles of storage and insurance. Popular tokens like Paxos Gold (PAXG) and Tether Gold (XAUT) are each backed by one troy ounce of stored gold, blending traditional assets with blockchain convenience.
Tether alone held 116 tonnes of gold by late 2025, accounting for around 2% of global quarterly demand during some periods. For crypto-native investors, this opens new doors to diversify on-chain while leveraging gold’s 5,000-year legacy. PAXG can even be used as collateral in DeFi, turning idle value into yield. However, any slowdown in AI hardware expansion could temper gold’s industrial appetite.
