Gold demand from the electronics sector rose to 68.3 tonnes in the second quarter. This marked a 4% year-over-year increase.
The rise came as artificial intelligence (AI) infrastructure spending offset a slump in consumer device shipments.
AI Infrastructure Lifts Gold Electronics Demand
The electronics sector accounts for the majority of gold used in technology. Demand there climbed from 65.8 tonnes in the same quarter of 2025, the World Gold Council reported.
Growth came from AI server mainboards, integrated circuit substrates, and printed circuit boards for low-earth orbit satellites. Memory and semiconductor use also rose, driven by the same AI memory demand surge reshaping chipmaker valuations.
Automotive lighting added more. Gold wire and gold-tin bonding remain standard in vehicle head and tail lamps, where heat and vibration demand durable materials.
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“Gold usage in the electronics space very much remained on a two-speed setting: strong AI infrastructure investment offset weakness in smartphone and laptop shipments, primarily due to surging memory costs. High gold prices also continued to accelerate thrifting and substitution in many low- and midrange applications, adding further pressure to some traditional consumer electronic applications,” the report read.
The consumer end moved in the opposite direction. IDC forecasts smartphone shipments falling 13.9% in 2026 to 1.09 billion units. That would be the steepest annual drop the market has recorded.
Other industrial and decorative gold use fell 7% to 10.1 tonnes, a ninth consecutive annual decline. Dentistry slipped 6% as ceramic alternatives gained ground.
Still, technology remains a small part of the market. It accounted for 80.4 tonnes of the total gold demand of 1,269 tonnes. Central bank gold buying supplied 289 tonnes over the same period.
The council flagged a key downside risk. Weaker AI returns or an electronics downturn could remove the support now carrying gold through the handset slump.
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