Gold Demand Falls 17%, Central Banks Boost Reserves
The gold market experienced a decline in jewellery demand by 17% during the second quarter of 2026, as high prices prompted consumers to opt for lighter products instead. The World Gold Council reported that total global gold demand remained unchanged from last year at 1,269 tonnes, while investment demand fell to 262 tonnes due to lower prices.
The value of jewellery demand rose 22% to $86 billion in the second quarter, despite the decline in volume. Central banks and other official institutions increased their gold reserves by a net 289 tonnes, representing a 62% jump from the same period last year.
According to Louise Street, Senior Markets Analyst at the World Gold Council, 'Gold's early-year rally reversed in the second quarter, with prices consolidating after correcting from record highs. But the market remained well supported, reflecting gold's established role as a diversifier and store of value.'