The World Gold Council's second-quarter 2026 Global Gold Demand Trends Report, released on July 30, showed that as gold prices retreated from their record highs earlier in the year, total global gold demand for the second quarter remained flat year-on-year at 1,269 tonnes.
For the first half of the year, total global gold demand rose 2% year-on-year to 2,522 tonnes, worth approximately $380 billion. With prices retreating from their peaks, investment demand for gold cooled in the second quarter.
The report indicated that global investment in gold ETFs, bars, and coins fell to 262 tonnes in the second quarter. Net outflows of 45 tonnes from gold ETFs were the primary driver of the decline in quarterly investment demand, although the first half still saw modest net inflows of 18 tonnes. Demand for gold bars and coins remained relatively stable, slipping just 3% year-on-year in Q2; supported by strong first-quarter performance, total demand for bars and coins in the first half was 21% higher than the same period last year.
Meanwhile, driven by activity in Asia, over-the-counter investment reached 327 tonnes in the second quarter, pushing demand in this segment to 571 tonnes for the first half, reflecting solid performance. Central banks continued to increase their gold holdings. In the second quarter, global central banks and other official institutions added a net 289 tonnes to their gold reserves, a 62% increase year-on-year, with many countries reporting a pickup in buying activity.
However, weighed down by a weak first quarter, central bank gold demand in the first half of the year was slightly below recent elevated levels. According to the World Gold Council's 2026 Central Bank Gold Reserves Survey, 45% of respondent central banks expect to increase their gold reserves over the next year, highlighting the metal's long-term, stable importance in official reserves.
Additionally, the high gold price continued to weigh on global jewellery demand in the second quarter, which fell 17% year-on-year, as consumers either reduced purchases of pure gold jewellery or opted for lighter-weight pieces. This led to a decline in total jewellery demand for the first half, though the value of jewellery consumption showed resilience, rising 22% year-on-year to $86 billion.
On the supply side, total global gold supply in the second quarter was unchanged from the same period last year at 1,269 tonnes, though trends in mine production and recycled gold supply diverged. Estimated mine supply rose 2% year-on-year to 966 tonnes, supported by new output from Canada and Chile. Meanwhile, despite sustained high prices, recycled gold supply fell 6% year-on-year.
According to Louise Street, Senior Market Analyst at the World Gold Council, the strong rally in gold prices at the start of the year reversed in the second quarter, with prices entering a consolidation phase after retreating from historic highs. However, the market has remained well-supported, confirming gold's established role as a risk diversifier and store of value. "Although gold ETF flows fell in line with the price movement, continued central bank buying and growth in OTC investment jointly pushed total gold demand up 2% in the first half."
Looking ahead to the second half of 2026, investment demand is expected to drive gold demand growth, though the demand structure may shift. "OTC activity and Asian investment demand are expected to play an increasingly prominent role, while Western interest in gold ETFs may become more closely tied to real US Treasury yields, US monetary policy expectations, and the US dollar's trajectory. Global central banks will remain significant gold buyers, although their pace of purchasing may be slightly slower than over the past four years. The high gold price will continue to suppress jewellery demand, and as consumers prefer to hold rather than sell their gold, there is little sign of growth in recycled gold supply," the analyst added.