Emerging Markets Fuel Physical Gold Demand Amid Price Volatility
Emerging markets have maintained their strong demand for physical gold, despite fluctuations in global prices. According to data from the World Gold Council, China and India combined accounted for over half of the world's gold bar and coin purchases in the first half of 2026.
The council's second-quarter Gold Demand Trends report shows that global bar and coin demand reached 307.1 tonnes between April and June, with a total of 784 tonnes in the first half. This is one of the strongest on record, driven primarily by retail demand from Asia.
China remained the largest retail gold investment market, with mainland Chinese bar and coin demand totaling 107.2 tonnes in the second quarter. India's demand rose 9 percent year on year to 50.3 tonnes in the same period. The two countries together accounted for about 157.5 tonnes of global demand in the second quarter, or roughly 51 percent.
Other emerging markets also contributed to strong physical gold demand. Turkey recorded 19.5 tonnes in the second quarter, while Indonesia and the United Arab Emirates purchased 14.5 and 5.3 tonnes respectively. Middle Eastern markets were resilient, with Saudi demand reaching 4.2 tonnes.