Louise Street

Senior Markets Analyst World Gold Council

Krishan Gopaul

Senior Analyst, EMEA World Gold Council

Demand steadies in Q2 as price softens

H1 total demand volume slightly firmer, value rockets

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.1

Gold ETFs came under selling pressure in Q2 (-45t). Moderate outflows were in response to weaker gold prices and, particularly in North America, upward adjustments to both inflation and interest rate expectations alongside a strengthening US dollar.

Bar and coin investment held steady y/y (307t) in Q2. This signalled a return to more typical levels of buying following two extraordinarily strong quarters.

Central banks made significant gold purchases in Q2 (289t). After a notable Q1 slowdown following a downward revision to our data, buying among this cohort recovered sharply to the lofty levels that have been typical in the last four years.

Jewellery demand fell to its lowest quarterly volume since the pandemic (278t), as high gold prices and broader inflationary pressures continued to constrain affordability. In comparison, spending on gold jewellery was up 14% y/y at US$40bn, confirming gold’s continued importance in share of wallet. 

Technology usage of gold again firmed slightly (80t) as AI-related demand offset weakness in the consumer electronics market.

Highlights

  • The LBMA (PM) gold price averaged US$4,506.29/oz in Q2. The price was 8% lower than the Q1 record, but 37% higher than the average from Q2 2025.
  • Total gold supply held steady at 1,269t in Q2. A 2% y/y increase in mine production offset a 6% y/y decline in recycling as lower q/q gold prices discouraged selling of old gold jewellery.

Outlook

We expect investment to remain the primary driver of demand growth through the second half, supported increasingly by OTC activity and Asian buying. Central banks remain on course for another strong year, although likely lower than 2025. Jewellery volumes will likely remain under pressure from high gold prices. We see only modest growth potential from mine production and recycling.

 

Chart 1: Q2 demand stabilised following modest Q1 growth

Quarterly demand, tonnes and US$ value*

Chart 1: Q2 demand stabilised following modest Q1 growth

Chart 1: Q2 demand stabilised following modest Q1 growth
Quarterly demand, tonnes and US$ value*
Sources: ICE Benchmark Administration, Metals Focus, World Gold Council; Disclaimer *Data as of 30 June 2026.

Sources: ICE Benchmark Administration, Metals Focus, World Gold Council; Disclaimer

*Data as of 30 June 2026.

Gold supply and demand

Table 1: Quarterly gold supply and demand by sector, tonnes

 Q2'25Q3'25Q4'25Q1'26Q2'26q/q %
change
y/y %
change
Supply
Mine Production947.71,028.1986.6901.3965.672
Net Producer Hedging-25.8-0.2-20.2-22.1-22.8--
Recycled Gold346.7342.7365.8373.8326.1-13-6
Total Supply1,268.61,370.61,332.21,253.11,268.910
 
Demand
Jewellery Fabrication354.2420.0438.9332.1310.3-7-12
Jewellery Consumption335.3375.6434.8294.2278.2-5-17
Jewellery Inventory18.944.44.137.832.1-1570
Technology78.681.782.181.680.4-22
Electronics65.868.669.169.368.3-14
Other Industrial10.811.111.010.410.1-3-7
Dentistry2.12.02.01.91.90-6
Investment486.8554.1603.9539.2262.2-51-46
Total Bar and Coin315.6328.4428.1476.8307.1-36-3
Bars250.7251.0331.4397.1247.8-38-1
Official Coins40.131.654.351.833.5-35-16
Medals/Imitation coins24.845.942.427.925.8-84
ETFs & Similar Products171.1225.7175.762.4-44.8--
Central Banks & Other inst.177.9226.3208.256.5288.941162
Gold Demand1,097.41,282.11,333.11,009.4941.8-7-14
OTC and Other171.188.5-0.9243.7327.13491
Total Demand1,268.61,370.61,332.21,253.11,268.910
LBMA Gold Price (US$/oz)3,280.43,456.54,135.24,872.94,506.3-837

Note: For an explanation of these terms, please see the Notes and definitions download: www.gold.org/goldhub/data/gold-demand-by-country.
Source: Metals Focus, Refinitiv GFMS, ICE Benchmark Administration, World Gold Council 
 

Footnotes

  1. Calculated using quarterly average LBMA Gold Price PM in US$ for Q1 and Q2.

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