Global Gold Demand Stable in Q2 2026 Amid Price Dip, Central Bank Buying Surges

Global gold demand held steady in the second quarter of 2026, according to a report from the World Gold Council. Despite a dip from record highs earlier in the year, total demand for the first half reached 2522 tons, valued at $380 billion.

Investment in gold-backed ETFs, bars, and coins experienced a slowdown in Q2, losing momentum from the year's strong start. This was partly due to $45 tons in outflows from ETFs, though net demand for them remained positive for the first half.

Conversely, demand for gold bars and coins saw a modest 3% year-on-year decrease in Q2 but rose 21% in the first half, buoyed by a robust Q1 performance. The over-the-counter (OTC) market, fueled by Asian investment, continued its strong showing, with demand reaching 327 tons in Q2 and 571 tons for the first half.

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The decline in gold prices in the second quarter came after record highs at the start of the year, but demand remained supported by strong fundamentals reflecting gold's role in diversifying portfolios and as a reliable store of value.

Central banks were significant buyers, adding a net 289 tons in Q2, a 62% increase from the previous year. A survey indicated that 45% of central banks plan to increase their gold holdings in the coming year. However, high prices pressured jewelry demand, which fell 17% in Q2 as consumers opted for lighter, less expensive pieces. Despite this, the total value of jewelry demand rose 22% year-on-year in the first half to $86 billion.

Total global gold supply remained stable at 1269 tons in Q2, balancing increased mine production with decreased recycling. Mine output rose 2% to 966 tons, driven by new projects in Canada and Chile. "The decline in gold prices in the second quarter came after record highs at the start of the year, but demand remained supported by strong fundamentals reflecting gold's role in diversifying portfolios and as a reliable store of value," said Louise Street, senior markets analyst at the World Gold Council. She anticipates investment to remain the main driver for demand in the second half, with central banks continuing their support.

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Central banks continued to boost their reserves at a stronger pace.