World Gold Council: Global gold demand remained stable at 1,269 tons in the second quarter. High gold prices curbed jewellery consumption

The Zhitong Finance App learned that the “Global Gold Demand Trend Report” for the second quarter of 2026 released by the World Gold Council showed that as gold prices fell from the historical high set in early 2026, total global demand for gold remained flat year-on-year in the second quarter, at 1,269 tons. In the first half of the year, total global demand for gold rose 2% year on year to 2,522 tons, or about US$380 billion.

Gold prices fell from a high level, cooling the demand for gold investment. Global investment in gold ETFs, bars and coins fell to 262 tons in the second quarter. The net outflow of gold ETFs in the second quarter was 45 tons, which was the main reason for the decline in investment demand during the quarter. However, there was still a slight net inflow of 18 tons of gold ETFs in the first half of the year.

Investment in gold bars and coins was relatively stable, at 307 tons, down only 3% year on year in the second quarter; supported by strong performance in the first quarter, total demand for gold bars and coins in the first half of the year was 21% higher than in the same period last year.

On the other hand, driven by the Asian region, OTC investment reached 327 tons in the second quarter, driving demand in the sector to 571 tons in the first half of the year, with steady performance.

In the second quarter, central banks and other official institutions around the world increased their total net gold reserves by 289 tons, an increase of 62% over the previous year. Gold purchasing activities of central banks in many countries rebounded. However, dragged down by weakness in the first quarter, global central bank demand for gold purchases in the first half of the year was slightly lower than the high level in recent years. According to the “2026 Global Central Bank Gold Reserve Survey” released by the World Gold Council, 45% of the central banks surveyed expect to increase their own gold reserves within the next year, which highlights the important position of gold in the medium to long-term stability of official reserves.

Affected by high gold prices, global demand for gold jewellery continued to be under pressure in the second quarter, at 278 tons, down 17% year on year. Consumers either reduced their purchases of pure gold jewellery or opted for lighter weight products. As a result, total demand for jewellery declined in the first half of the year, but jewellery consumption still showed resilience, increasing 22% year over year to US$86 billion in the first half of the year.

In the second quarter, driven by demand related to artificial intelligence, technology consumption once again increased slightly to 80 tons, offsetting the impact of the weakness in the consumer electronics market.

The total global gold supply in the second quarter was the same as the same period last year, at 1,269 tons. Among them, there was a divergence between gold mine production and recycled gold supply trends. Supported by additional production from Canada and Chile, gold ore supply is estimated to have increased 2% year over year to 966 tons. Meanwhile, despite the continued rise in gold prices, the supply of recycled gold fell 6% year over year.

Louise Street, a senior market analyst at the World Gold Council, said, “The strong rise in gold prices at the beginning of the year was reversed in the second quarter and entered the consolidation phase after recovering from a historically high level. However, the market is still strongly supported, confirming the recognized status of gold as a risk diversification tool and a means of storing value.

Although the flow of gold ETF funds declined simultaneously with changes in gold prices, central banks continued to increase gold purchases and OTC investments, which together contributed to a slight increase of 2% in total demand for gold in the first half of the year.

Looking ahead to the second half of 2026, investment demand is expected to drive growth in gold demand, but the demand structure may change. OTC trading activity is expected to play an increasingly prominent role in Asian investment demand, while Western market interest in gold ETFs may be more closely related to actual US bond yields, US monetary policy expectations, and the trend of the US dollar. Global central banks will continue to be important buyers of gold, but the pace of their purchases may be slightly slower than in the past four years. High gold prices will continue to suppress demand for jewellery, while consumers are more likely to hold rather than sell their gold holdings, and there is little sign of an increase in the supply of recycled gold.”