Global gold demand remained largely unchanged in the April-June quarter as softer prices tempered investment demand after the record rally earlier this year, according to the World Gold Council (WGC). Total gold demand stood at 1,269 tonnes in the second quarter of 2026, almost unchanged from 1,268.6 tonnes a year earlier, the WGC said in its Q2 2026 Gold Demand Trends report.
Q2 Demand Overview
Despite the flat quarterly performance, gold demand in the first half of 2026 rose 2% year-on-year to an estimated 2,522 tonnes, valued at around USD 380 billion. The WGC reported that investment in gold exchange-traded funds (ETFs), bars and coins fell to 262 tonnes during the quarter as lower gold prices eased the strong investment momentum seen earlier in the year. The decline was largely driven by 45 tonnes of outflows from gold-backed ETFs between April and June. However, ETF demand for the first half of the year remained positive at 18 tonnes.
| Demand Component | Q2 2026 (tonnes) | YoY Change |
|---|---|---|
| Total demand | 1,269 | ~0% |
| Investment (ETF, bars, coins) | 262 | Declined |
| ETF outflows | -45 | -- |
| OTC market | 327 | Strong |
| Central bank purchases | 289 | +62% |
| Jewellery (volume) | -- | -17% |
Investment Demand
Investment in gold bars and coins was comparatively resilient, declining just 3% year-on-year in the quarter. First-half demand in this segment was still 21% higher than the corresponding period last year, supported by exceptionally strong buying in the first quarter. Demand in the over-the-counter (OTC) market, supported by Asian investors, remained strong at 327 tonnes in the second quarter and 571 tonnes in the first half of the year.
Central Bank Buying Surges
Central banks continued to add to their gold reserves, purchasing a net 289 tonnes during the April-June quarter, a 62% increase from a year ago. Buying was led by countries including Poland, China and the Czech Republic. Sachin Jain, WGC Regional CEO, India, said the Reserve Bank of India (RBI) also continued to accumulate gold. "The Reserve Bank of India added 200 kg during the April-June quarter," he told PTI.
Jewellery Demand Weighed by High Prices
High gold prices continued to weigh on jewellery demand, which fell 17% year-on-year in volume terms during the quarter as consumers bought less gold and shifted towards lighter products. However, the value of jewellery demand remained strong. During the first half of 2026, jewellery demand by value rose 22% year-on-year to USD 86 billion, reflecting elevated gold prices.
Supply Side
On the supply side, total gold supply remained broadly unchanged at 1,269 tonnes during the quarter. Mine production increased 2% year-on-year to 966 tonnes, helped by higher output from Canada and Chile, while recycled gold supply declined 6% despite elevated prices.
Outlook
Louise Street, WGC Senior Markets Analyst, said gold prices corrected in the second quarter after hitting record highs earlier in the year but continued to find strong support. "While gold ETF flows receded in step with prices, continued central bank buying and growth in OTC investment contributed to total gold demand edging 2 per cent higher across the first half of the year," she said. Looking ahead, Street said investment demand is expected to remain the key driver of gold consumption in the second half of 2026, although the composition of demand may change.
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