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Gold demand holds steady in Q2 despite price drops, with strong central bank buying and Asian investment offsetting jewelry and ETF weakness.

Market News
30 Jul 2026
Kitco
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Neutral
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In Q2 2026, gold demand remained stable at 1,269 tonnes year-over-year, supported by steady investment, a sharp rebound in central bank purchases, and strong Asian buying. Despite a significant price drop from record highs and selling pressure due to rising U.S. interest rates and a stronger dollar, gold's long-term uptrend persists. Jewelry demand fell sharply due to high prices, but physical investment in bars and coins stayed resilient, especially in China and India. Central banks notably increased gold reserves, with Poland and China leading buyers, signaling continued confidence in gold as a strategic asset. Going forward, investment demand, particularly from Asia and OTC markets, is expected to drive the gold market through the rest of 2026.

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