Gold demand held steady in the second quarter of 2026 at 1,269 tonnes, matching year-over-year levels as robust central bank buying offset declining investor interest through exchange-traded funds, according to ING’s commodities team. Central banks continued aggressive gold accumulation during the period, maintaining momentum in a multi-year trend of official sector purchasing that has supported prices. However, this institutional demand was counterbalanced by outflows from gold ETFs, signaling weakening retail and institutional investor appetite for the precious metal. The divergence highlights a shifting dynamic in gold markets where sovereign buyers are increasingly driving demand while traditional investment vehicles face pressure. This pattern suggests central banks remain concerned about currency stability and geopolitical risks, while some investors may be rotating into other assets amid changing market conditions.
FXnCO Insight
Traders should monitor the sustainability of central bank purchases, as any slowdown could expose gold prices to downside pressure given the current weakness in ETF demand.
Source: FXStreet