One number from the latest World Gold Council data caught my attention perhaps even more than the rise in the gold price itself. Global gold jewelry demand fell to just 278 tonnes in the second quarter, making it one of the weakest Q2 levels in WGC data.
I think there is a fairly simple reason behind this: gold is becoming expensive for the average buyer.
This is particularly visible in markets such as India and China, where jewelry is not simply about fashion but has traditionally represented an important form of physical gold ownership. People still want gold, but at current prices they are often buying smaller amounts, choosing lighter pieces, or simply postponing their purchases.
What I find particularly interesting is the contrast. While high prices are weighing on some consumer demand, central banks and investors continue to buy physical gold. The market is gradually changing — some traditional buyers are stepping back, while others remain willing to accumulate gold at prices that would have seemed extreme only a few years ago.
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