Gold Demand Eases After Record Q2 Purchases
Central bank demand for gold is expected to ease after a sharp rebound in Q2, according to data from the World Gold Council. The council's report shows that central banks purchased a record 289 tons of gold in Q2, led by Poland and China, following a weak Q1 where purchases were only 57 tons.
This rebound was expected, as the initial estimate for Q1 was much weaker than actually reported, with an error of 187 tons. Despite this recovery, the council is forecasting that official sector buying will ease and fall below 2025 levels.
The World Gold Council also noted that gold-backed exchange-traded funds (ETFs) saw outflows in Q2, while bar and coin demand, jewelry demand, and recycled supply all remained weak. Additionally, mining and metal sector flows remain poor, indicating low investor confidence in current price levels.