AI infrastructure spending lifted use in servers, chips and satellites even as smartphone and laptop shipments weakened, the World Gold Council said.
Electronics-sector gold demand rose to 68.3 tonnes in the second quarter, up 4% from 65.8 tonnes a year earlier, as spending tied to AI infrastructure offset weaker consumer device shipments, the World Gold Council said. The gain was driven by AI server mainboards, integrated circuit substrates, printed circuit boards for low-earth orbit satellites, and stronger memory and semiconductor usage linked to surging AI memory demand. Automotive lighting also supported consumption because gold wire and gold-tin bonding remain standard in head and tail lamps that must withstand heat and vibration. The council said gold use in electronics remained on a “two-speed” path, with robust AI investment balancing weakness in smartphones and laptops as higher memory costs and elevated gold prices accelerated thrifting and substitution in lower-end applications. Outside electronics, other industrial and decorative gold demand fell 7% to 10.1 tonnes, while dentistry declined 6% as ceramic alternatives gained ground. Technology demand totaled 80.4 tonnes out of overall gold demand of 1,269 tonnes in the period, compared with 289 tonnes of central bank buying. The council also warned that weaker AI returns or a broader electronics downturn could remove the support currently cushioning gold demand from the handset slump.