Gold demand from the jewellery sector fell by more than 23% in the first quarter of 2026 as surging prices fundamentally altered how engagement rings are designed and bought, according to new research.
Gold prices rose 16.2% over the quarter and are now nearly 60% higher than a year ago, creating substantial cost pressures for manufacturers and consumers alike.
Total global gold demand fell 6% in the quarter, though it remains 2.1% higher year-on-year compared to the first quarter of 2025.
The jewellery sector has felt the impact far more acutely, with demand dropping 23.5% over the quarter and 22.9% compared to the same period last year.
The price surge is driving a structural shift in how engagement rings are valued, with the traditional split between stone and setting being upended.
Historically, around 80% of an engagement ring's value was concentrated in the diamond, with the remaining 20% attributed to the setting. Rising gold costs, combined with the growing availability of lab-grown diamonds, have in some cases reversed that balance entirely.
Consumers are responding by becoming more selective about materials and design, with growing interest in alternatives including platinum, which has become comparatively more accessible relative to gold, and palladium, a lighter metal that offers a different cost and durability profile.
The research was conducted by 77 Diamonds, the online diamond jewellery retailer, which analysed global gold demand and price data from the World Gold Council. Co-founder Tobias Kormind said customers are increasingly approaching purchases strategically rather than absorbing price increases.