Global Gold Demand Quarterly Report: Asia Leads Recovery
The latest quarterly report released by the World Gold Council (WGC) on July 27, 2026 shows that total global gold demand in Q2 2026 reached 1,215 tons, up 15% year-on-year, the highest for the same period since 2020. Among them, the Asian market performed particularly strongly, with China and India, the two major consuming countries, contributing nearly 70% of global demand growth. Strong jewelry consumption and investment demand together drove the steady rise in gold prices.
China: Jewelry Consumption Rebounds, Investment Demand Rises
The report indicates that China's gold demand in Q2 reached 280 tons, up 18% year-on-year. With the steady economic recovery and rising consumer confidence, gold jewelry retail sales achieved double-digit growth during the 618 shopping festival. Meanwhile, amid increased volatility in RMB assets, gold was favored by investors as a safe-haven asset, with demand for gold bars and coins up 22% year-on-year. Physical gold withdrawals from the Shanghai Gold Exchange also hit a quarterly high, reflecting strong domestic market demand.
India: Festivals and Wedding Season Drive Gold Buying Spree
India entered the traditional wedding and religious festival season in Q2, with gold demand up 12% year-on-year to 170 tons. Despite gold prices hovering above $4,000 per ounce, Indian consumers' cultural preference for gold did not weaken. The head of the World Gold Council's India region said that improved rural incomes and favorable monsoon rainfall expectations further boosted gold purchase intentions. In addition, the Reserve Bank of India added 8 tons of gold reserves in Q2, continuing the gold buying trend in recent years.
Gold ETF Net Inflows Hit Quarterly High, Investment Demand Solid
Another highlight of the report is the strong performance of gold ETFs. Global gold ETFs saw net inflows of 98 tons in Q2, the largest quarterly inflow since Q3 2020, with Asian ETFs accounting for 42% of the total. Investors in North America and Europe also increased their gold holdings amid Fed policy uncertainty, pushing total global gold ETF holdings back to around 3,450 tons. Analysts pointed out that ETF inflows provided steady buying support for gold prices, especially when prices corrected below $4,000 per ounce, often leading to significant inflows.
Supply Side: Gold Mine Output Slightly Declines, Costs Rise
On the supply side, global gold mine output in Q2 fell 2% year-on-year to 880 tons, mainly due to production cuts and suspensions at small mining companies and declining ore grades in some major producing countries. At the same time, rising costs for energy, labor, and environmental compliance pushed the median cash cost for gold producers to $1,350 per ounce, up 8% from last year. High production costs further limited downside price room, providing long-term support for gold prices.
Outlook: Asian Demand Continues to Strengthen, Gold Price Floor Gradually Rises
Looking ahead to the second half of 2026, the World Gold Council expects Asian market demand to remain resilient. Consumption peak seasons such as China's National Day Golden Week and India's Diwali will follow one after another, injecting new momentum into gold consumption. In addition, global geopolitical risks and expectations of monetary policy easing are intertwined, further highlighting gold's role as a safe-haven asset. Most analysts believe that gold prices will oscillate and build a base in the range of $3,900-$4,200 per ounce. If Asian demand maintains its current growth rate, gold prices are expected to challenge historical highs again in Q4.
It is worth noting that the People's Bank of China suspended gold purchases in Q2, sparking market speculation, but the WGC report believes this is only a phased strategy, and the global central bank net gold buying trend has not changed in the long run. Asian investors can closely monitor inventory changes at the Shanghai Gold Exchange and Indian import data to capture short-term trading opportunities.
Trading Strategy Suggestions
- Medium-to-long-term investors: Consider buying gold ETFs or physical gold bars on dips, focusing on support near $3,900 per ounce.
- Short-term traders: Monitor U.S. nonfarm payroll data and Fed interest rate decisions. If gold breaks above $4,200, follow the momentum long.
- Risk warning: Beware of a rapid rebound in the dollar index and a global stock market rebound diverting funds; strictly set stop-losses.
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