World Gold Council: Global demand for gold remains stable in the second quarter
London, July 30, 2026 – The Gold Demand Trends Report for the Second Quarter of 2026 issued by the World Gold Council revealed that the total demand for gold stabilized at 1,269 tons compared to the same period last year, coinciding with a decline in gold prices from their record levels recorded at the beginning of 2026.
This decline in prices contributed to supporting demand during the first half of the year, rising by 2% on an annual basis to about 2,522 tons, with a total value of $380 billion.
Investment in gold-backed exchange-traded funds, along with gold bullion and coins, declined to 262 tons during the second quarter, with the strong investment momentum witnessed at the beginning of the year receding.
This decline is mainly due to gold-backed exchange-traded funds recording outflows amounting to 45 tons during the same period, despite the net demand for these funds in the first half of the year remaining in positive territory at 18 tons.
On the other hand, investment in bullion and gold coins showed relative stability, as it decreased by only 3% on an annual basis during the second quarter, and demand in the first half of the year remained 21% higher compared to the same period last year, supported by the exceptional performance recorded in the first quarter.
On the other hand, demand in the over-the-counter (OTC) trading market, supported by investment activity in Asian markets, reached 327 tons during the second quarter, bringing the total demand in this market to 571 tons during the first half of 2026.
Central banks and other official institutions also added a net 289 tons to their gold reserves during the second quarter of the year, recording a 62% increase year-on-year, with many markets resuming purchases at a stronger pace.
Despite the strong performance during the second quarter, demand in the first half of the year remained below the high levels recorded in recent years, as a result of the weak activity recorded in the first quarter.
The “Gold Reserves in Central Banks” survey conducted by the World Gold Council showed that 45% of participants intend to increase their gold holdings during the next 12 months, which reflects the yellow metal’s continued position as a strategic asset in official reserves.
In the jewelry sector, high gold prices continued to pressure demand during the second quarter, declining by 17% year-on-year, as consumers tended to reduce their purchases and search for lighter, more budget-friendly pieces.
While this contributed to a decline in the volume of demand during the first half of the year, the value of demand for jewelry remained strong, increasing by 22% year-on-year to reach US$86 billion globally during the same period.
As for the supply level, the total global supply of gold stabilized during the second quarter at 1,269 tons compared to the same period last year, with the increase in mine production balanced by a decline in recycling operations.
Mine production increased by 2% year-on-year to reach 966 tons, driven by the start of production in new projects in Canada and Chile.
On the other hand, the quantities of recycled gold fell by 6% on an annual basis, although prices remained at high levels.
Louise Street, chief market analyst at the World Gold Council, said that gold prices witnessed a decline during the second quarter after the strong rise they recorded at the beginning of the year, as markets stabilized following a correction from record levels. However, demand remained supported by strong fundamental factors, which reflects the established position of gold as an effective tool for diversifying investment portfolios and a reliable store of value.
She added that despite the decline in flows of gold-backed exchange-traded funds coinciding with the decline in prices, the continued purchases of central banks, along with the growth of investments in the over-the-counter gold market, contributed to raising the total demand for gold by 2% during the first half of 2026.
It expressed its expectations that investment will remain the main driver of demand growth during the second half of 2026, although the demand mix is likely to witness a noticeable change.
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