World Gold Council data shows electronics demand for gold reached 69.3 tonnes in Q1 2026, the highest level since late 2021, as AI chips and data-center hardware pull the segment higher. Tokenized gold markets rode the same wave, with roughly $90.7 billion in Q1 trading volume and more than 44,500 new wallets opened.
AI data centers are consuming more gold per chip than conventional hardware, and that shift is now showing up in the metal's demand figures. According to data from the World Gold Council, electronics gold demand reached 69.3 tonnes in Q1 2026, a 3% increase year-over-year and the highest level since late 2021.
Why AI chips need more gold
Advanced memory modules and the interconnects inside next-generation chips use more gold than older hardware, because the metal improves thermal management and signal integrity. As a result, AI data centers require higher gold intensity per unit than conventional servers.
Total technology and industrial gold demand hit 81.6 tonnes in Q1 2026, a 1% increase from Q1 2025. Consumer electronics demand remains under pressure from elevated prices, so the sector's recovery is leaning almost entirely on AI-related buying.
Tokenized gold rides the same wave
Tokenized gold is seeing similar momentum. Trading volume in tokenized gold markets reached about $90.7 billion in Q1 2026, up 30%. More than 44,500 new wallets were created in the space over the same period.
Products such as Paxos Gold (PAXG) and Tether Gold (XAUT) let investors gain exposure to physical gold without handling storage or insurance, since each token is typically backed by one troy ounce of allocated gold held in vaults. By November 2025, Tether had accumulated 116 tons of gold, a figure that equated to roughly 2% of global quarterly demand in certain periods. PAXG holders can also use their tokens as collateral in DeFi protocols, earning yield on what would otherwise sit static in a vault.
A demand driver concentrated in one sector
The risk is concentration: if the AI buildout slows, or chip architectures evolve to use less gold, this particular demand driver could weaken, especially since consumer electronics demand is already soft. Sustaining the pace of wallet creation would also require continuous onboarding from traditional finance audiences who may not yet be comfortable with self-custody or DeFi mechanics.
Source: Crypto Briefing
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