Gold demand in jewellery drops 23% as prices surge 16% in Q1 2026, reshaping engagement ring market.

In the first quarter of 2026, gold demand from the jewellery sector fell by over 23% due to a 16.2% surge in gold prices, which are now nearly 60% higher than a year ago. This price increase has pressured both manufacturers and consumers, leading to a structural shift in how engagement rings are valued, with rising gold costs and lab-grown diamonds changing the traditional value split between diamond and setting. Consumers are increasingly choosing alternative materials like platinum and palladium. Overall, global gold demand fell 6% in the quarter but remains slightly higher year-on-year.