Global demand for gold jewelry contracted sharply in the second quarter of 2026, falling 17% year-on-year to 278 tons.
The World Gold Council (WGC) attributed the decline to elevated gold prices, which have eroded affordability and prompted consumers to reduce purchases of the precious metal.
The slump in physical jewelry demand coincides with a broader retreat from gold across investment channels.
Investor demand for gold exchange-traded funds collapsed in the same period, with net flows turning sharply negative as major markets pulled back from the asset.
This dual weakness in both physical and financial demand highlights a broad-based cooling in gold appetite despite the metal's high price levels.
The data underscores the sensitivity of gold consumption to price levels.