Gold Demand Remains Flat Amid Lower Prices

The World Gold Council's Q2 2026 Gold Demand Trends report revealed that total gold demand remained flat year-on-year at 1,269 tonnes. The lower gold price helped lift first-half demand by 2 percent year-on-year to an estimated 2,522 tonnes, worth US$380 billion.

Investment in gold-backed exchange-traded funds (ETFs), bars and coins fell to 262 tonnes in the second quarter as the strong investment momentum seen earlier in the year eased. The decline was primarily driven by 45 tonnes of outflows from gold-backed ETFs during the quarter, although first-half ETF demand remained modestly positive at 18 tonnes.

Demand in the over-the-counter (OTC) market, supported by Asian investment, reached 327 tonnes in the second quarter, bringing first-half OTC demand to 571 tonnes. Central banks and other official institutions added a net 289 tonnes to gold reserves in the second quarter, up 62 percent year-on-year, as buying strengthened across several markets.