Gold Demand Trends

US gold demand remained under pressure in Q2 2026 as continued outflows from physically backed gold ETFs outweighed positive demand across other sectors. 

US-listed gold-backed ETFs recorded another sharp reduction in holdings in June, reinforcing the pattern of concentrated quarter-end selling seen earlier in the year. Bar and coin investment provided a partial offset, rising year-on-year despite moderating from elevated Q1 levels, while jewellery demand remained subdued in volume terms as high prices continued to weigh on affordability.

Total gold demand, including OTC, was unchanged y/y at 1,269t in Q2. This took demand for the first half year to 2,522t (+2% y/y), with a record value of US$380bn.

India's gold demand eased in Q2 as elevated prices and policy measures weighed on volumes, although spending remained robust, reaching a record high for a second quarter. Jewellery demand proved resilient despite affordability pressures, while investment demand moderated following a strong run but remained above its long-term average. Supply fell to a six-year low, with ample inventories and increased recycling helping to meet market needs. Looking ahead, demand is likely to remain sensitive to price movements. However, festive and wedding-related purchases, coupled with continued investment interest, should provide support through the second half of the year.

US gold demand softened in Q1 2026 as a sharp reversal in ETF flows outweighed resilience across other segments. Physically backed US gold ETFs recorded sizeable monthly outflows in March, erasing inflows accumulated earlier in the quarter amid risk‑off conditions, elevated positioning and higher opportunity costs. Bar and coin investment provided a partial offset as retail interest remained resilient, while jewellery demand fell to a record quarterly low on affordability pressures. Despite near‑term volatility, ongoing geopolitical tensions, policy‑rate uncertainty and broader macroeconomic risks continue to support the longer‑term investment case for gold in the US.

Gold demand saw a modest y/y increase in Q1 to 1,231t, while value surged to a record US$193bn. Bar and coin investment drove gains, while ETF buying slowed in Q1. Central banks continued to buy in healthy size. Jewellery demand volumes remained under pressure amid record high prices.

India’s gold demand rose 10% y/y to 151t in Q1, while nearly doubling in value to a record INR 2,275bn (US$25bn). Growth was led by investment demand, up 54% y/y to 82t, with bar and coin demand nearly matching jewellery consumption and ETFs hitting record highs. Jewellery volumes fell 19% y/y, but spending rose 47%. Investment demand is set to remain supportive, while jewellery demand may stay under pressure from inflation and economic headwinds.

Gold demand hit record levels in 2025. Total gold demand (including OTC) topped 5,000t during a year which saw 53 all-time highs in the gold price. Investment fuelled the gold market last year: safe haven and diversification motives drove huge ETF inflows and exceptional bar and coin buying.

US gold demand more than doubled to 679t in 2025, driven almost entirely by strong investment demand in physically-gold‑backed ETFs. US‑listed ETFs added 437t of demand,  pushing holdings to a record 2,019t (US$280bn AUM). Jewellery, technology, and bar‑and‑coin demand softened amid historically high gold prices, even as value‑based purchasing – particularly for jewellery – held relatively firm. Geopolitical uncertainty, rate expectations, and a weaker dollar supported strong investor appetite in 2025, reinforcing gold’s role as a strategic asset.