Central banks purchased 289 tonnes of gold in the second quarter of 2026, a sharp rebound from a weak first quarter, according to the World Gold Council's latest Gold Demand Trends report. The pickup pushed total quarterly gold demand, including over-the-counter trading, to 1,269 tonnes, essentially unchanged from a year earlier, while first-half demand reached 2,522 tonnes, up 2 percent year over year and worth a record $380 billion.

The composition of that demand shifted notably. Exchange-traded funds backed by physical gold saw net outflows of roughly 45 tonnes in the quarter, as investors responded to softer prices and rising expectations for higher interest rates, particularly in North America. Bar and coin buying held steady at about 307 tonnes, a pullback from two unusually strong prior quarters but still a healthy level by historical standards.

Jewelry demand told a different story, falling to its lowest quarterly volume since the pandemic at 278 tonnes, as elevated prices continued to squeeze affordability for consumers. Even so, the dollar value of jewelry purchases rose 14 percent from a year earlier, to about $40 billion, illustrating how much higher prices have offset weaker volumes.

The London gold benchmark price averaged $4,506.29 per ounce in the quarter, down 8 percent from the first quarter's record but still 37 percent above where it stood a year earlier. Total supply, including mine output and recycled metal, was roughly flat at 1,269 tonnes, as a 2 percent rise in mine production offset a 6 percent drop in recycling tied to the lower quarterly price.

Source: World Gold Council - https://www.gold.org/goldhub/research/gold-demand-trends/gold-demand-trends-q2-2026