The World Gold Council (WGC) has released its Gold Demand Trends Q2 2026 report, showing that global gold demand remained resilient despite softer prices during the second quarter. Investment demand and continued central bank purchases supported the market, while jewellery consumption remained under pressure due to elevated gold prices.
The report indicates that total gold demand, including over-the-counter (OTC) transactions, remained unchanged year-on-year at 1,269 tonnes in Q2. During the first half of 2026, total demand reached 2,522 tonnes, up 2% from the previous year, with a record market value of 380 billion dollar.
Gold Price Averaged Over 4,500 Dollar per Ounce
According to the report, the LBMA PM gold price averaged 4,506.29 dollar per ounce during the second quarter.
- The average price was 8% lower than the record level recorded in Q1 2026.
- However, it remained 37% higher than the average price in Q2 2025, reflecting gold’s continued strength over the past year.
Gold ETF Demand Turned Negative
Global gold-backed ETFs experienced net outflows of 45 tonnes during Q2.
The WGC attributed the selling pressure to:
- Moderately weaker gold prices.
- Higher inflation and interest rate expectations, particularly in North America.
- A stronger U.S. dollar.
Bar and Coin Investment Stabilised
Physical investment through bars and coins remained steady at 307 tonnes, returning to more normal buying levels after two exceptionally strong quarters.
The report noted that investor interest in physical bullion remained healthy despite reduced momentum.
Central Banks Increased Gold Purchases
Central banks purchased 289 tonnes of gold during Q2 2026. The WGC said buying recovered strongly after a revised slowdown in the first quarter, returning to the elevated levels that have characterised official sector demand over the past four years.
Although purchases are expected to remain robust throughout 2026, the Council believes annual central bank buying is likely to finish below the exceptionally strong total recorded in 2025.
Jewellery Demand Fell to Pandemic-Era Lows
Jewellery demand declined to 278 tonnes, marking its lowest quarterly volume since the pandemic. High gold prices and broader inflation continued to reduce affordability for consumers.
However, despite weaker volumes, consumer spending on gold jewellery increased 14% year-on-year to 40 billion dollar, highlighting the metal’s continued value in household spending.
Technology Demand Continued to Improve
Gold demand from the technology sector increased slightly to 80 tonnes during Q2.
The report said growing demand linked to artificial intelligence (AI) applications helped offset continued weakness in the broader consumer electronics industry.
Gold Supply Remained Stable
Total global gold supply remained broadly unchanged at 1,269 tonnes.
Key supply trends included:
- Mine production increased 2% year-on-year.
- Recycling declined 6% year-on-year, as softer quarter-on-quarter gold prices discouraged consumers from selling old jewellery.
The increase in mining output largely compensated for the decline in recycled gold.
WGC Outlook for the Second Half of 2026
The World Gold Council expects investment demand to remain the primary growth driver during the second half of 2026.
According to the report:
- OTC investment activity is expected to increase.
- Asian investment demand is likely to strengthen further.
- Central banks should continue purchasing gold, although at a lower pace than in 2025.
- Jewellery demand is expected to remain under pressure due to elevated prices.
- Only modest growth is anticipated from mine production and recycled gold supply.
The WGC believes investment flows, particularly from Asia and OTC markets, will play an increasingly important role in supporting the global gold market for the remainder of the year.
FAQs
1. What was total global gold demand in Q2 2026?
According to the World Gold Council, total gold demand, including OTC transactions, remained unchanged year-on-year at 1,269 tonnes during the second quarter of 2026.
2. What was the average gold price during Q2 2026?
The LBMA PM gold price averaged US$4,506.29 per ounce, which was 8% below the record average in Q1 2026 but 37% higher than Q2 2025.
3. Why did jewellery demand decline in Q2 2026?
Jewellery demand weakened mainly because elevated gold prices and ongoing inflation reduced affordability, bringing quarterly jewellery consumption to its lowest level since the pandemic.
4. How did central banks contribute to gold demand?
Central banks purchased 289 tonnes of gold during Q2, with buying recovering strongly after a weaker first quarter, reinforcing gold’s role as a strategic reserve asset.
5. What is WGC’s outlook for gold in the second half of 2026?
The WGC expects investment demand, supported by OTC activity and stronger Asian buying, to remain the main driver of gold demand, while jewellery demand is likely to stay subdued and supply growth should remain modest.
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