Gold ETFs Sell as Central Banks Buy Record Amount

The gold market in mid-2026 saw a stark divergence between two groups of sophisticated investors. Gold-backed exchange-traded funds (ETFs) recorded net outflows of 45 tonnes across the second quarter, while central banks purchased gold at the fastest pace ever recorded for any second quarter.

This split reflects fundamentally different investor psychologies and time horizons. ETF investors are largely rate-sensitive, managing against quarterly benchmarks, whereas sovereign reserve managers prioritize long-term strategic goals.

According to the World Gold Council's Gold Demand Trends Q2 2026 report, published July 30, 2026, total gold demand held broadly flat year-on-year, with a record-high first-half value of $380 billion.