Gold Demand Loses Luster as Prices Consolidate
The World Gold Council's latest Gold Demand Trends report reveals that gold demand has lost its shine in Q2 2026. Despite record-high prices, demand for gold flatlined year-over-year at 1,269t.
However, jewellery demand value remained resilient, rising 22% year-on-year to an estimated $86bn in H1. This growth was largely driven by increased sales of lighter products and a shift away from traditional gold purchases.
Investment in gold ETFs, bars, and coins took a hit, falling to 262t in Q2 as the lower gold price dampened momentum. Central banks and other official institutions continued to add gold to their reserves, increasing their holdings by 289t in Q2 and bringing the total to $380bn.
According to WGC senior markets analyst Louise Street, 'Gold's early-year rally reversed in the second quarter, with prices consolidating after correcting from record highs.' Street noted that while investment flows receded, central bank buying and OTC market growth contributed to a 2% increase in total gold demand across the first half of the year.