Gold price falls 28%, but global demand holds firm in the first half of 2026

Herz — World Desk · 30 July 2026 at 08:28 · 30s summary · 3 min read

What the figures show

Gold had fallen nearly 28% from its peak by July 30, 2026. It was trading at around US$4,000 an ounce, below its level at the beginning of the year, according to Handelsblatt.

Global gold demand nevertheless reached 2,522 tonnes in the first half of 2026, up 2% from the same period in 2025, according to World Gold Council data obtained in advance by Handelsblatt.

All of that growth occurred during the first three months of 2026. Second-quarter demand was unchanged from a year earlier at 1,269 tonnes.

Investors pull back

Investment demand fell 46% year on year in the second quarter. John Reade, chief market strategist at the World Gold Council, said demand—particularly from investors—had returned to normal after unusually high levels in the fourth quarter of 2025 and first quarter of 2026.

Gold-backed exchange-traded funds, which can track the gold price without giving investors direct ownership of the physical metal, recorded net outflows equivalent to 45 tonnes as institutional investors reduced their exposure.

Worldwide retail demand for gold bars and coins declined 3% year on year in the second quarter. Across the first half as a whole, however, it remained 21% above its 2025 level.

In Germany, demand for bars and coins fell 22% year on year in the second quarter. Temporary shortages at precious-metal dealers during the earlier price surge had subsided.

Central banks return to the market

Central banks bought 346 tonnes of gold in the first half of 2026, less than a year earlier. The decline mainly reflected sales by Turkey and Azerbaijan during the first quarter.

The trend reversed in the second quarter. Central-bank purchases reached 289 tonnes, 62% more than a year earlier, with Poland and China the most active buyers.