Investor Demand Stepping Up as Central Banks' Gold Buying Slows
Central banks' gold buying has slowed down significantly in July, with official-sector purchases dropping by more than half to 23 tonnes from 51 tonnes in June. This is according to new data from the World Gold Council.
Despite this slowdown, gold prices have remained near record highs, suggesting that investment demand is taking on a bigger role in supporting the market.
The WGC's outlook suggests that investment will be the principal source of gold-demand growth for the rest of 2026, while central banks are still expected to make net purchases even if annual demand finishes below the 2025 total.
Net official-sector purchases for the year so far stand at about 130 tonnes, down from around 160 tonnes over the same period last year. However, BMO analysts Helen Amos and George Heppel note that official buying remains elevated by historical standards and continues to provide underlying support for the gold market.