The World Gold Council (WGC) released its Q2 2026 Gold Demand Trends report. Central banks purchased a record 289 tonnes of gold during the second quarter. This volume represents a fivefold increase from the revised Q1 figures. Purchases jumped 62% compared to the same period in 2025.
Poland led the aggressive buying by adding 51 tonnes to its reserves. China continued its accumulation with a 33-tonne purchase. The WGC attributes this robust demand to ongoing geopolitical risks and strategic reserve diversification.
Official sector activity provides critical support for the market. This buying offsets gold-backed ETF outflows and a 17% year-over-year decline in jewelry demand. High prices drove the drop in jewelry consumption. Strong investment demand from Asia and the over-the-counter (OTC) market helps stabilize total demand.
Gold prices remained steady on July 31 despite bullish signals from central banks. The metal is heading for its first monthly gain in five months. Markets balance fundamental support against potential Federal Reserve policy shifts. Elevated Treasury yields remain a primary headwind for the sector.