Central Banks Boost Gold Demand as Jewellery Market Struggles

Global gold demand remained stable at 1,269 tonnes in the second quarter of 2026. Despite high prices dampening consumer interest in jewellery and exchange-traded funds (ETFs), central banks increased their purchases by 62% year-on-year, helping stabilize the market.

The World Gold Council's latest report shows that while gold demand levels matched those seen during the same period last year, the market performed unevenly. Central bank buying was a primary driver of demand, with net additions reaching 289 tonnes to their official reserves.

Poland, China, and the Czech Republic were among major institutional buyers, while India's Reserve Bank added 200 kg to its holdings. However, jewellery demand fell by 17% in volume terms as consumers opted for lighter-weight products due to elevated prices.