Record gold prices outpace rising mining costs in Q1’26
Global average gold producer All-In Sustaining Costs (AISC) rose by 5% q/q and 16% y/y to US$1,785/oz in Q1’26. Rising costs have become a persistent feature of the industry, with the quarter marking the 28th consecutive year-on-year increase in AISC.
India gold market update: Recovery taking shape
India's gold market showed signs of strengthening, supported by recovering jewellery demand, steady investment demand, increased futures trading activity, and a rebound in imports. These developments point to improving conditions ahead of the festive season.
China gold market update: Strong official sector buying in July
China’s wholesale gold demand rebounded in June, closing a relatively subdued H1 weighed down by weakness in the jewellery sector. Despite June’s loss, Chinese gold ETFs recorded robust inflows in H1. Retail investment demand for bars and coins also remained strong during the first half. Meanwhile, the PBoC extended its gold-buying streak to 20 months in June, reporting the largest gold purchase since October 2023 and lifting its holdings to 2,346t, representing 8% of total reserves.
Weekly Markets Monitor - Unwedged
Geopolitical concerns eased as talks on access through the Strait of Hormuz continued. Economic updates were uneven across major economies: in the US, resilient business activity and strong corporate earnings contrasted with a cooling labour market; Eurozone manufacturing improved; China’s exports stayed strong even as domestic activity moderated; Japan’s consumer spending weakened further; and in India, the RBI kept rates unchanged while business activity moderated.
Europe's golden heatwave
Global physically backed gold ETFs attracted US$3bn of inflows in July, reversing two consecutive months of outflows. Demand was broad-based across all regions, led by Europe, while positive flows and a higher gold price lifted total global gold ETF AUM by 1% to US$530bn. Collective holdings rose by 23t to 4,068t.
Weekly Markets Monitor - One battle after another
Last week was marked by shifting monetary policy expectations, fragile geopolitical conditions in the Middle East, and volatility across equity and currency markets. The Fed, BoE, and BoJ all held rates amid dissenting votes.
Gold Demand Trends: India Focus Q2 2026
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.
