Gold used in electronics rose 4% year‑on‑year to 68.3 tonnes in Q2 2026 as AI infrastructure spending on server mainboards, IC substrates, PCBs for LEO satellites and memory offset a slump in smartphones and laptops. Technology demand accounted for 80.4 tonnes of total gold demand of 1,269 tonnes while IDC forecasts smartphone shipments down 13.9% to 1.09 billion in 2026, and the World Gold Council warns that weaker AI returns could remove this support, posing downside risk to adoption and price; implications are indirect for crypto, DeFi and hardware security and supply chains.

Bullish

Predictions Markets

See what traders are focused on

View analytics →

In Brief

Gold used in electronics rose 4% to 68.3 tonnes in the second quarter.
AI infrastructure demand offset weakness as smartphone shipments fall.
World Gold Council warns technology demand could fade if AI returns disappoint.

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.

“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.

Subscribe to our YouTube channel to watch leaders and journalists provide expert insights

Read the article at BeInCrypto