Investors Step Up Gold Buying as Central Banks Slow

Investor demand has helped stabilize gold prices even as central bank buying slowed in July. According to new World Gold Council data, net official-sector purchases dropped by more than half to 23 tonnes from 51 tonnes in June.

Central banks still remain on course for another strong year of net purchases, but investment is expected to be the principal source of gold-demand growth through the rest of 2026. Global physically backed gold exchange-traded funds drew $3 billion of net inflows in July, reversing two straight months of outflows.

The changing demand mix could eventually impact miners as much as bullion. Major producers have become cash-rich but increasingly reserve-poor, pushing them towards more acquisitions of developers and juniors holding undeveloped ounces.