World Gold Council data shows Q2 net buying hit 289 tons, but demand is expected to ease below 2025 levels.
Central bank gold purchases surged to a record 289 tons in Q2, led by Poland and China, following a weak 57-ton Q1. The rebound marked the strongest quarterly demand in over a decade but may not sustain momentum.
Earlier estimates for Q1 were revised sharply lower, making the Q2 recovery more pronounced. However, the World Gold Council forecasts a decline in official sector buying for the remainder of the year, potentially falling below 2025 levels.
Investor sentiment remains fragile, with Q2 outflows from gold-backed ETFs, softer bar and coin demand, and weak mining sector flows. Jewelry demand and recycled supply also declined, signaling broader market caution.