Gold Demand Holds Firm Amid Price Volatility

Global gold demand remained strong in the first half of 2026, despite market volatility. According to the World Gold Council, demand rose 2% year-over-year to 2,522 tonnes.

The price of gold reached a record high of USD 5,501 per ounce in January but fell nearly 27% by June to around USD 3,994. Physical bar and coin sales increased 21% to 784 tonnes, while exchange-traded fund (ETF) flows contributed to a 24% decline in overall investment demand.

Higher US bond yields and expectations of elevated interest rates put downward pressure on prices, but central bank purchases continued to provide long-term support. Nearly 90% of surveyed central banks expect global gold reserves to increase over the next 12 months, with 45% planning to expand their own holdings.