This summary is re-posted from the World Gold Council. The original is here.
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.
Gold supply and demand
Table 1: Quarterly gold supply and demand by sector, tonnes
| Q2'25 | Q3'25 | Q4'25 | Q1'26 | Q2'26 | q/q % change |
y/y % change |
|
| Supply | |||||||
| Mine Production | 947.7 | 1,028.1 | 986.6 | 901.3 | 965.6 | 7 | 2 |
| Net Producer Hedging | -25.8 | -0.2 | -20.2 | -22.1 | -22.8 | - | - |
| Recycled Gold | 346.7 | 342.7 | 365.8 | 373.8 | 326.1 | -13 | -6 |
| Total Supply | 1,268.6 | 1,370.6 | 1,332.2 | 1,253.1 | 1,268.9 | 1 | 0 |
| Demand | |||||||
| Jewellery Fabrication | 354.2 | 420.0 | 438.9 | 332.1 | 310.3 | -7 | -12 |
| Jewellery Consumption | 335.3 | 375.6 | 434.8 | 294.2 | 278.2 | -5 | -17 |
| Jewellery Inventory | 18.9 | 44.4 | 4.1 | 37.8 | 32.1 | -15 | 70 |
| Technology | 78.6 | 81.7 | 82.1 | 81.6 | 80.4 | -2 | 2 |
| Electronics | 65.8 | 68.6 | 69.1 | 69.3 | 68.3 | -1 | 4 |
| Other Industrial | 10.8 | 11.1 | 11.0 | 10.4 | 10.1 | -3 | -7 |
| Dentistry | 2.1 | 2.0 | 2.0 | 1.9 | 1.9 | 0 | -6 |
| Investment | 486.8 | 554.1 | 603.9 | 539.2 | 262.2 | -51 | -46 |
| Total Bar and Coin | 315.6 | 328.4 | 428.1 | 476.8 | 307.1 | -36 | -3 |
| Bars | 250.7 | 251.0 | 331.4 | 397.1 | 247.8 | -38 | -1 |
| Official Coins | 40.1 | 31.6 | 54.3 | 51.8 | 33.5 | -35 | -16 |
| Medals/Imitation coins | 24.8 | 45.9 | 42.4 | 27.9 | 25.8 | -8 | 4 |
| ETFs & Similar Products | 171.1 | 225.7 | 175.7 | 62.4 | -44.8 | - | - |
| Central Banks & Other inst. | 177.9 | 226.3 | 208.2 | 56.5 | 288.9 | 411 | 62 |
| Gold Demand | 1,097.4 | 1,282.1 | 1,333.1 | 1,009.4 | 941.8 | -7 | -14 |
| OTC and Other | 171.1 | 88.5 | -0.9 | 243.7 | 327.1 | 34 | 91 |
| Total Demand | 1,268.6 | 1,370.6 | 1,332.2 | 1,253.1 | 1,268.9 | 1 | 0 |
| LBMA Gold Price (US$/oz) | 3,280.4 | 3,456.5 | 4,135.2 | 4,872.9 | 4,506.3 | -8 | 37 |
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
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