On July 31, 2026, the World Gold Council released its latest Global Gold Demand Trends Report, showing central banks worldwide purchased a net 312 tonnes of gold in Q2 2026, up 25% year-on-year—the highest second-quarter total on record. The figure far exceeded market expectations and reignited investor enthusiasm for precious metals. Notably, in Singapore, Asia's financial hub, gold ETF inflows hit a quarterly record, becoming a striking highlight in global gold fund flows.
Central bank gold buying accelerates: de-dollarization and reserve diversification
The report shows Q2 central bank purchases concentrated mainly in emerging markets. The People's Bank of China added about 68 tonnes, the Reserve Bank of India 45 tonnes, and Turkey's central bank followed with 38 tonnes. In addition, central banks in Poland, Czech Republic, Qatar and others also kept increasing their gold reserves. World Gold Council market analysts noted that against heightened geopolitical uncertainty, volatile US Treasury yields and an accelerating global de-dollarization process, gold's strategic value as a reserve asset free of sovereign credit risk is being reassessed.
"This is already the 13th consecutive quarter of net central bank gold purchases," the council's senior analyst said on a conference call. "Total central bank gold purchases for 2026 are expected to exceed 1,100 tonnes, up from 830 tonnes in 2025." He added that gold's share in emerging-market central bank reserves remains low, with a median of only about 12%, far below the 60%+ level of developed economies in Europe and America, implying ample room for further purchases.
Jewelry and investment demand diverge: Asia outperforms
Besides central bank buying, the report also showed global gold investment demand in Q2 (including bars, coins and gold ETFs) rose 8% year-on-year, led by strong performance in Asia. China and India account for over 60% of global gold jewelry consumption. Although high gold prices have dampened demand to some extent, rigid wedding and festive demand continues to support the market.
Gold ETFs, a popular investment vehicle in recent years, recorded global inflows of 168 tonnes in Q2, with Asia contributing over 40% and becoming the world's largest regional source of inflows for the fourth straight quarter. Precious metal ETF products listed on the Singapore Exchange (SGX), including SPDR Gold ETF (GLD SP) and locally initiated Singapore gold ETFs, recorded combined net inflows of S$340 million, accounting for 12% of Asian inflows and setting a record for quarterly inflows in Singapore.
Singapore investors show surging allocation appetite
Latest data from the Monetary Authority of Singapore (MAS) shows that in the first half of 2026, the number of local retail accounts investing in gold ETFs rose 30% from end-2025, with total assets under management (AUM) surpassing S$4.5 billion. Market observers note that as Asia's wealth management center, Singapore's high-net-worth clients view gold as a core asset to hedge tail risks, while expectations of a weaker US dollar and sticky inflation are driving faster inflows.
A local private bank commodity strategist said: "Clients now ask most not 'should I buy gold?', but 'how to conveniently allocate to gold through the Singapore market'." He believes SGX has a sound precious metals trading ecosystem, from physical gold storage to ETFs, futures and structured products, with transparent regulation and low transaction costs, making it a preferred platform for Asian gold investment. Meanwhile, major Singapore financial institutions such as DBS Bank and OCBC Bank have raised their recommended gold allocation from a cautious 5% to 8%-10%.
Broker ratings and institutional outlook: gold enters a "long-term bull market"
Following stronger-than-expected central bank buying data, several international investment banks have revised up their gold price forecasts. In a July 30 research report, Goldman Sachs raised its end-2026 gold target price from US$2,500/oz to US$2,800/oz, citing easing global liquidity expectations and structural central bank buying. JPMorgan was more optimistic, saying gold's "super cycle" has begun and could challenge the US$3,000 level in the next 18 months.
In Singapore's domestic market, commodity analysts at OCBC noted that gold may face short-term volatility from the Federal Reserve's interest rate decision, but the medium-term upward trend is fairly certain. "We advise investors to build positions in tranches and avoid chasing highs." He is also bullish on gold mining stocks, believing upstream miners' earnings leverage will continue to expand during the gold price upcycle.
Guide to gold investment channels in Singapore: from ETFs to physical
For local Singapore investors, channels to invest in gold are increasingly diverse. First are exchange-traded gold ETFs such as SPDR Gold ETF and UOB Gold ETF, which offer high liquidity and low fees, suitable for most investors. Second, under MAS, the Precious Metals Clearing System (PMCS) provides approved gold dealer channels supporting physical subscription of gold bars and coins. In addition, some brokers offer gold Contracts for Difference (CFD) and gold futures products to meet leveraged traders' needs.
On taxation, Singapore is friendly toward gold investment. Individual investors buying and selling gold ETFs on exchange are exempt from capital gains tax, while physical gold purchased from Qualifying Bullion Certificate (QBC) accredited dealers is also eligible for GST exemption. These policies are important background behind continued global fund inflows.
Outlook: short-term fluctuation, long-term allocation value
Looking back at the first half of 2026, international gold prices swung widely between US$2,300 and US$2,700 per ounce, but every pullback was met with strong buying. The market generally believes the Fed's rate-hike cycle has largely ended, and real interest rates are expected to decline, which will further benefit gold. The World Gold Council emphasized in its report that central bank buying is based mainly on long-term strategic considerations, and short-term fluctuations do not change their trend of increasing holdings.
Overall, with its open financial environment, diverse investment products and robust regulatory framework, the Singapore market is becoming an important bridgehead for Asian gold investment. For investors already holding precious metals positions, patience is advisable; for those not yet positioned, a "long-term thinking" approach similar to central banks may be useful, appropriately increasing gold's allocation in global portfolios to guard against potential uncertainty.
