Gold Demand Stays Stable at $380 Billion in H1 2026 Amid Strong Institutional Buying

Global gold demand remained largely stable in the April-June quarter of 2026, with total consumption reaching 1,269 tonnes, almost unchanged from 1,268.6 tonnes recorded in the same period last year, according to the World Gold Council’s (WGC) Q2 2026 Gold Demand Trends report.

Despite a correction in gold prices after touching record highs earlier in the year, the precious metal market remained supported by strong institutional buying and investment activity. Gold demand in the first half of 2026 rose 2% year-on-year to 2,522 tonnes, valued at around $380 billion.

Investment demand moderated during the second quarter as lower prices reduced buying momentum. Holdings through gold ETFs, bars and coins declined to 262 tonnes, mainly due to 45 tonnes of ETF outflows during the April-June period. However, first-half ETF demand remained positive at 18 tonnes. Bar and coin investments remained resilient, falling only 3% year-on-year in Q2, while first-half demand was still 21% higher compared with the previous year.

The over-the-counter (OTC) gold market witnessed strong activity, with demand reaching 327 tonnes in Q2 and 571 tonnes during the first half, driven largely by investors in Asian markets.

Central banks continued to strengthen their gold reserves, adding 289 tonnes during the second quarter, marking a 62% year-on-year increase. Countries including Poland, China and the Czech Republic emerged as major buyers. The Reserve Bank of India (RBI) added 200 kg of gold reserves during the quarter. Meanwhile, high gold prices impacted consumer demand, with global jewellery demand declining 17% year-on-year in Q2 as buyers shifted towards lighter products. However, the value of jewellery demand remained strong, rising 22% in the first half to $86 billion.

On the supply side, total gold supply remained unchanged at 1,269 tonnes. Mine production increased 2% to 966 tonnes, supported by new output from Canada and Chile, while recycling fell 6% despite elevated prices. The WGC expects investment demand to remain the key growth driver in the second half of 2026, with Asian investors, OTC activity and continued central bank purchases likely to support the market. However, jewellery demand volumes may remain under pressure as consumers adjust to higher gold prices.