Good news from global precious metals markets! The World Gold Council released its Q2 2026 Global Gold Demand Trends Report on July 29, showing central banks net purchased 180 tons of gold in the quarter, bringing first-half cumulative net purchases to a record 350 tons. Meanwhile, silver ETF holdings broke through the 32,000-ton mark on July 28, reaching 32,150 tons, also a new all-time high. Driven by strong capital inflows, gold and silver prices both rose during Asian trading on July 30, with spot gold at $2,420 per ounce and spot silver at $31.8 per ounce, up 18% and 25% year-to-date respectively.

Central bank gold buying spree: Dual drivers of de-dollarization and risk aversion

The WGC report noted that central banks net purchased 180 tons of gold in Q2, up 12% year-on-year. Emerging market central banks were the main buyers, with China, India, Poland, and Thailand continuing to add. The Bank of Thailand (BOT) bought 8 tons in Q2, raising its total reserves to 280 tons, boosting the share of foreign exchange reserves to 8.5%. Analysts said global central bank gold buying is driven by two factors: accelerating de-dollarization as countries seek to diversify FX reserves, and rising geopolitical risks enhancing gold's appeal as a sovereign-risk-free safe haven.

The report also showed global gold investment demand (including bars, coins, and ETFs) reached 250 tons in Q2, up 8% YoY. Bar and coin demand rose 5% to 180 tons, while gold ETFs saw net inflows of 70 tons, ending two consecutive quarters of outflows. A senior WGC analyst noted: "Both central banks and investors are buying, signaling a shift in market confidence from speculation to long-term allocation, a structural change that will provide solid support for gold prices."

Silver ETF surge: Convergence of industrial demand and safe-haven money

The silver market is equally vibrant. As of July 28, global silver ETF holdings reached 32,150 tons, an all-time high, up 4,200 tons (+15%) from the start of the year. Inflows primarily came from North American and European ETF products, led by iShares Silver Trust (SLV) which saw a 12% increase. Three factors drive the silver ETF surge: first, growing industrial demand from green industries like solar photovoltaic and electric vehicles -- CRU Group forecasts 2026 industrial silver demand at 210 million ounces, up 8% YoY; second, rising risk aversion, with silver's high historical volatility offering excess returns in asset allocation; third, the gold-to-silver ratio fell from 85x at the start of the year to 76x, leading some investors to view silver as undervalued.

A board member of the Thai Precious Metals Association noted that Thai investors' interest in silver has clearly increased, especially in silver futures (ticker: SB) and gold ETFs (ticker: GOLD) traded on the SET exchange, with trading volumes rising significantly. Since July, the average daily trading volume of GOLD ETF has grown 30% compared to the first-half average, indicating a shift from equities to precious metals as a safe haven.

Thai local gold prices at record highs? How should investors position?

Driven by rising international gold prices and a weakening Thai baht, Thailand's gold ornament price (96.5% purity) was quoted at 41,500 baht per baht-weight on July 30. Although it did not surpass the all-time high of 42,000 baht set in April, it remains at elevated levels. The Gold Traders Association of Thailand said that if the Fed starts cutting rates in the second half, gold prices could challenge $2,500, potentially pushing Thai gold prices to new highs.

For Thai investors looking to participate in precious metals, common channels include buying gold bars and ornaments, investing in Thai gold ETFs (GOLD), trading gold futures (GF10), silver futures (SB), or through securities accounts investing in precious metals stocks such as gold mining companies (e.g., TGM) and related ETFs. Given that global central bank gold buying has not slowed and silver ETF holdings continue to hit new highs, medium-to-long-term positioning in precious metals still offers both defensive and value-adding functions.

From a technical perspective, gold has firmly held above $2,400 with a bullish moving average alignment, support at $2,350, and a near-term target of $2,450. Silver is consolidating near $31; a break above the prior high of $32 could open upside room. However, investors should watch for potential volatility from the end-of-month nonfarm payrolls data and the Fed's interest rate decision. It is advisable to position in batches and set strict stop-losses.

Overall, with the triple support of central bank buying, ETF inflows, and geopolitical risks, the precious metals bull market is unlikely to reverse in the near term. Going forward, watch the WGC's Q3 Demand Trends Report and major miners' production data to adjust allocation strategies.

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