Market Speaks: Global Gold demand up 2% in first half of 2026, jewellery demand in Q2 falls to lowest since pandemic

World Gold Council or WGC stated in its latest Gold Demand Trends for June quarter that total world gold demand (including OTC investment and stock changes) held steady at 1,269 tonnes (t). It noted that Gold demand for H1 stood at 2,522t, rising 2% y/y. The Q2 bar and coin investment held steady y/y at 307t. This signalled something of a normalisation of demand following two extraordinarily strong quarters, WGC noted.

 Gold-backed ETFs came under selling pressure in Q2. Global holdings fell by 45t during the quarter, on combined outflows from North American and Asian-listed funds. Central banks made significant gold purchases in Q2. After a notable Q1 slowdown, buying among this cohort recovered sharply to levels that have been typical in the last four years.  Gold jewellery demand in Q2 was the lowest since the pandemic at 278t. However, spending on gold jewellery was 14% higher y/y at US$40bn as gold continued to increase its share of wallet.

Total gold supply was flat y/y, WGC noted as a 2% increase in Q2 mine production offset a 6% y/y decline in recycling as lower q/q gold prices discouraged selling of old gold jewellery. Global Q2 mine production stood at to 966t – a record level for a second quarter.

Investment is expected to be the principal source of demand growth through the rest of 2026, supported increasingly by Asian buying and broader OTC activity. Central banks should also remain significant buyers. High prices will continue to weigh on jewellery volumes but elicit only a measured response from mine production and recycling.

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