Gold investment demand fell in the second quarter while central bank buying reached 289 tonnes

According to a report published on Sunday, 2 August 2026, spot gold traded at about 4,077 dollars an ounce on 30 July. Weaker investment and jewellery demand, together with higher mine output, has capped the pace of price gains.

World Gold Council data show demand for gold bars and coins fell to 307 tonnes in the second quarter, after exceeding 400 tonnes in each of the two preceding quarters. Investment demand excluding over the counter trades fell to 262 tonnes from 487 tonnes a year earlier, driven mainly by outflows from exchange traded funds. Central bank buying, by contrast, reached 289 tonnes in the second quarter, equal to an annualised rate of about 700 tonnes. Mine production rose to 966 tonnes in the quarter from 948 tonnes a year earlier, while recycled supply fell to 326 tonnes from 374 tonnes in the first quarter.

On the outlook, analysts at the Swiss bank UBS forecast gold reaching 4,400 dollars by September and 4,600 dollars by December, then 5,000 dollars in March 2027 and 5,200 dollars by June of that year. The analysis warns that with the Federal Reserve holding rates steady at last week's meeting, the short term risk is skewed towards a pullback to around 3,850 dollars. These figures are a forecast, not recorded market outcomes.