World Gold Council: Asian Buyers Underpin Gold's Upside in H2
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The World Gold Council's mid-year report finds that gold's rallies this year have consistently occurred during Asian trading hours, with Asian buyers replacing U.S. investors as the dominant price driver — whether the $4,000/oz level holds will be the key test for H2.
Why do gold rallies keep happening in Asian hours?
The World Gold Council's mid-year outlook, published July 1, found that gold's multiple rallies in H1 all took place during Asian trading sessions, while pullbacks clustered around U.S. market opens.
This means → the center of gold's "price discovery" is shifting east. Asian buyers now exert more directional influence on gold than U.S. investors.
In plain terms = gold used to take its cues from New York. Now you check Shanghai and Tokyo first.
Asia buying, America selling — why the divergence?
In the U.S., sticky inflation has pushed up yields and rate-hike expectations, driving investors to steadily cut gold ETF holdings.
In Asia, gold ETF demand in China, India, and Japan is fueled by three forces: geopolitical risk, rising local gold prices, and weakening local currencies.
This means → same asset, different lens. U.S. investors see "rates are too high — holding gold costs too much." Asian investors see "our currency is falling, risks are rising — gold is worth holding."
Central banks and retail buyers both loading up — how strong is the structural bid?
A separate World Gold Council report showed China's Q1 gold investment demand surged 67% year-on-year. The People's Bank of China has also continued adding gold to its reserve diversification strategy.
Emerging-market central bank buying, layered on top of private investment demand, forms a structural bid under Asian gold markets.
This reflects a buying pattern that is not short-term speculation — it is a long-term allocation logic running from sovereign reserves down to retail investors.
Can gold still rally in H2? $4,000 is the line to watch
Gold has pulled back from 12 record highs set during the January Middle East tensions to roughly $4,000 per ounce as of June 26.
The report sees upside potential in H2, but whether $4,000 holds as effective support will test the staying power of Asian physical buyers and long-term investors.
Put simply = gold has retreated to $4,000. The question now: will Asian buyers keep stepping in at this level? If they do, it becomes the floor for the next leg up. If they don't, the "support" is just a number on a chart.
Content is for reference only, not financial advice.