The World Gold Council's Q2 2026 Global Gold Demand Trends report indicates that as gold prices retreated from their record highs set at the start of the year, total global gold demand for the second quarter remained flat year-on-year at 1,269 tonnes. For the first half of 2026, total global demand saw a 2% increase year-on-year, reaching 2,522 tonnes, valued at approximately $380 billion.
The retreat from peak gold prices led to a cooling in gold investment demand. In the second quarter, total investment in gold ETFs, bars, and coins fell to 262 tonnes. A net outflow of 45 tonnes from gold ETFs was the primary driver behind the quarterly decline in investment demand, although gold ETFs still recorded a modest net inflow of 18 tonnes for the first half. Demand for gold bars and coins remained relatively stable at 307 tonnes, slipping just 3% compared to the same quarter last year. Supported by a strong first quarter, total demand for bars and coins in the first half was 21% higher than the same period in 2025.
On the other hand, driven by activity in Asia, over-the-counter (OTC) investment reached 327 tonnes in the second quarter, pushing total demand for this segment to 571 tonnes for the first half, a robust performance. Central banks and other official institutions added a combined net 289 tonnes to their gold reserves in the second quarter, a 62% increase year-on-year, with gold buying activity picking up in several countries. However, lagging behind the first quarter's weakness, total central bank gold demand in the first half of the year was slightly below the elevated levels of recent years.
The World Gold Council's 2026 Central Bank Gold Reserves Survey shows that 45% of respondent central banks plan to increase their gold reserves over the next twelve months, highlighting the metal's long-term, stable strategic importance in official reserves. Impacted by high gold prices, global jewelry demand continued to face pressure in the second quarter, falling 17% year-on-year to 278 tonnes, as consumers either reduced purchases of pure gold jewellery or shifted to lighter-weight products. This led to a decline in total jewelry demand for the first half, though the value of jewellery consumption showed resilience, rising 22% year-on-year to $86 billion.
In the second quarter, driven by AI-related demand, technology sector gold usage inched up again to 80 tonnes, offsetting the impact of weakness in the consumer electronics market. Total global gold supply in the second quarter was flat year-on-year at 1,269 tonnes, with divergent trends in mine production and scrap supply. Supported by new output from Canada and Chile, gold mine supply is estimated to have risen 2% year-on-year to 966 tonnes. Meanwhile, despite persistently high gold prices, scrap gold supply fell 6% year-on-year.
World Gold Council Senior Market Analyst Louise Street commented, "The strong rally in gold prices at the start of the year reversed in the second quarter, moving into a consolidation phase after retreating from record highs. However, the market remains well-supported, confirming gold's established role as a risk diversifier and a store of value. Although gold ETF flows retreated in line with the price movement, continued central bank buying and growth in OTC investment together 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, but the composition of demand is likely to 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 US real yields, US monetary policy expectations, and the direction of the US dollar. Global central banks will remain important gold buyers, though their pace of purchases may be slightly slower than the last four years. High gold prices will continue to suppress jewelry demand, while consumers are more inclined to hold onto their gold rather than sell it, with nearly no growth in scrap gold supply."