Gold Demand in UAE Remains Steady Amid Price Decline

The World Gold Council's Gold Demand Trends report revealed that total gold demand in the UAE during Q2 2026 was flat year-on-year at 1,269 tonnes. This comes after a record high in gold prices at the start of 2026.

Despite this, demand during H1 (January to June) was 2% higher year-on-year to an estimated 2,522 tonnes worth $380 billion. Investment in gold ETFs, bars, and coins dropped to 262 tonnes in Q2 due to the lower gold price.

The decline was primarily driven by 45 tonnes of outflows from gold-backed ETFs in Q2, although first-half ETF demand remained modestly positive at 18 tonnes. On the other hand, demand in the OTC market came in at 327 tonnes in Q2 and a healthy 571 tonnes in H1.

Central banks and other official institutions added a net 289 tonnes to reserves in Q2, up 62% year-on-year, as buying picked up across several markets. This is despite the stronger second quarter, first-half demand remaining below the elevated levels seen in recent years due to weaker activity in Q1.