BNY’s Geoff Yu notes World Gold Council (WGC) data showing a sharp rebound in central bank Gold purchases to a record 289 tons in Q2, led by Poland and China, after a very weak Q1. Despite this, the council expects official sector buying to ease and fall below 2025 levels, while ETF outflows and weak mining flows point to fragile investor confidence in Gold prices.

Official buying rebound but outlook softer

"The World Gold Council said central bank gold buying in Q1 was much weaker than previously estimated, with purchases of only 57 tons, down 187 tons from the prior view and the weakest start to a year in more than a decade."

"Demand then rebounded sharply in Q2, with net buying reaching a record 289 tons, led by Poland and China."

"Despite that recovery, the council expects central bank gold purchases to ease this year and likely fall below 2025 levels."

"The report also noted Q2 outflows from gold backed exchange traded funds, softer bar and coin demand, weaker jewelry demand, and lower recycled supply."

"Mining and metal sector flows remain weak in iFlow, indicating poor investor confidence in price levels."

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