Gold Demand Seen Easing After Q2 Rebound Amid Investor Fears

According to data from the World Gold Council (WGC), central bank demand for gold saw a sharp rebound in Q2, reaching a record 289 tons. This is a significant increase from Q1, where purchases were only 57 tons, which was down 187 tons from the prior view.

The rebound was led by Poland and China, but despite this recovery, the council expects official sector buying to ease and fall below 2025 levels. This forecast comes as ETF outflows and weak mining flows point to fragile investor confidence in gold prices.

Gold-backed exchange-traded funds (ETFs) saw Q2 outflows, while bar and coin demand, jewelry demand, and recycled supply also weakened. Mining and metal sector flows remain low, indicating poor investor confidence in price levels.