Gold: Central bank buying offsets ETF outflows – ING

ING’s commodities team reports that Gold demand was steady in 2Q 2026, with total demand flat year-on-year at 1,269 tonnes as strong central bank purchases balanced weaker ETF demand. They note net ETF outflows amid higher inflation and rate expectations and a stronger Dollar, while revised data imply central bank Gold buying in 2026 will likely fall below 2025 levels.

Steady demand with softer 2026 outlook

"According to the World Gold Council, total gold demand (including OTC transactions) was unchanged year-on-year at 1,269 tonnes in 2Q 2026, as strong central bank purchases offset weaker investor demand through gold exchange-traded funds (ETFs). Total demand reached 2,522 tonnes in the first half of the year, up 2% YoY."

"Gold ETFs recorded 45 tonnes of net outflows in the second quarter, reflecting growing inflation and interest rate expectations, along with a stronger US dollar."

"Central bank purchases increased 62% YoY to 289 tonnes in 2Q26, rebounding strongly from 1Q and remaining consistent with recent buying trends."

"However, revised data showed that central banks added only 57 tonnes in 1Q26, 187 tonnes below the April estimate, marking the weakest first-quarter demand in more than a decade."

"As a result, central bank gold purchases in 2026 are now expected to be lower than in 2025."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)