Gold Demand Stabilizes Despite Q2 Price Volatility

The World Gold Council reports that gold jewellery demand fell by 17% year-over-year during the second quarter of 2026 due to high prices. As a result, consumers shifted towards lighter products. The decline in demand pulled first-half jewellery volumes lower, but the value of demand rose 22% to $86 billion due to elevated prices offsetting the reduction in gold purchased.

Total global gold demand remained unchanged at 1,269 tonnes during the quarter, following a cooling in price momentum from record levels reached earlier this year. First-half demand increased by 2% year-over-year to an estimated 2,522 tonnes, carrying a total value of $380 billion.

Investment demand lost momentum in the second quarter, with combined investment in gold exchange-traded funds (ETFs), bars, and coins falling to 262 tonnes. Gold-backed ETFs registered outflows of 45 tonnes during the quarter, while bar and coin investment fell by 3% year-over-year.

However, demand in the over-the-counter market reached 327 tonnes during the second quarter, supported by investment from Asia. Central banks added a net 289 tonnes to their reserves during the second quarter, representing an increase of 62% from the same period last year.