Global gold demand flat at 1,269 tonnes in June quarter, says WGC

Global gold demand remained flat year-on-year at 1,269 tonnes in the April-June quarter, according to a report by the World Gold Council (WGC).

Prices of the precious metal moderated from the record highs touched earlier this year, the Council said in its report.

The total demand for the yellow metal was at 1,268.6 tonnes during the corresponding quarter of 2025, said the WGC in its 'Q2 2026 Gold Demand Trends' report.

The demand in the first half of the year rose 2 per cent year-on-year to an estimated 2,522 tonnes, worth $380 billion.

Investment in gold ETFs (exchange-traded funds), bars and coins dropped to 262 tonnes in the second quarter as lower gold prices led to moderation in strong investment momentum witnessed earlier in the year.

 

According to the WGC, the decline was primarily driven by 45 tonnes of outflows from gold-backed ETFs during the April-June period, although first-half ETF demand remained modestly positive at 18 tonnes.

However, bar and coin investment was relatively stable, down just 3 per cent year-on-year during the quarter, while first-half demand was still 21 per cent higher than the corresponding period last year, supported by an exceptional first quarter.

On the other hand, demand in the OTC (over-the-counter) market, helped by Asian investment, stood at 327 tonnes in the second quarter and 571 tonnes in first half of the year.

Central banks and other official institutions added a net 289 tonnes to the reserves during the April-June quarter, up 62 per cent year-on-year, as buying picked up across several markets, led by countries like Poland, China, and the Czech Republic, WGC Regional CEO, India Sachin Jain told PTI.

"The Reserve Bank of India added 200 kg during the April-June quarter," he added.

The WGC report further stated that high prices continued to weigh on jewellery demand in Q2, which fell 17 per cent year-on-year as consumers bought less gold and shifted towards lighter products.

As a result, first-half jewellery demand by volumes declined, but in terms of value, demand was resilient, rising 22 per cent year-on-year in H1 to a global total of $86 billion.

According to the report, the total gold supply during the second quarter was unchanged year-on-year at 1,269 tonnes, as mine production and recycling diverged.

Mine supply rose an estimated 2 per cent year-on-year to 966 tonnes, supported by new production from Canada and Chile.

At the same time, recycling declined 6 per cent year-on-year despite higher prices, the WGC report stated.

WGC Senior Markets Analyst Louise Street said gold's early-year rally reversed in the second quarter, with prices consolidating after correcting from record highs.

But the market remained well supported, reflecting gold's established role as a diversifier and store of value, she added.

"While gold ETF flows receded in step with prices, continued central bank buying and growth in OTC investment contributed to total gold demand edging 2 per cent higher across the first half of the year," said Street.

For the second half of 2026, she said, investment is likely to drive growth, however, the demand mix could shift.

"OTC activity and demand from Asian investors are expected to play an increasingly prominent role, while Western gold ETF interest may be more closely linked to real yields, US monetary policy expectations and the dollar. Central banks will remain significant buyers, albeit at a slightly slower pace than we've seen over the last four years," she stated.

High prices will keep pressure on jewellery volumes, though consumers may continue to hold their jewellery rather than sell it, with recycling showing little sign of increasing, she added.