Global investors continued pouring money into gold during the first half of 2026 despite a sharp pullback in June, signalling that confidence in the precious metal remains resilient amid ongoing geopolitical tensions and economic uncertainty, Mining Zimbabwe can report.
By Ryan Chigoche
For Zimbabwe, Africa’s leading gold producer, the trend is encouraging. Sustained global investment demand helps support international gold prices, strengthening export earnings and providing a favourable backdrop for the country’s largest foreign currency earner.
According to the latest report by the World Gold Council, investors channelled a net US$8 billion into gold-backed investment funds during the first six months of the year, even though June alone recorded US$8.9 billion in outflows as weaker prices prompted some investors to lock in profits.
The report shows that global gold holdings in these funds fell by 74 tonnes during June to 4,047 tonnes, while total assets under management declined to US$526 billion. However, holdings remained 18 tonnes higher than at the beginning of the year, suggesting that June’s sell-off was a temporary correction rather than a shift away from gold.
That distinction matters for Zimbabwe. While the country does not issue gold investment funds, it exports physical gold into international markets. Continued investor appetite for the metal supports global prices, which in turn boosts export revenues, mining profitability and foreign currency inflows.
June’s weakness was driven mainly by North America, where investors withdrew US$5.5 billion, resulting in the region’s weakest first-half performance since 2013.
The World Gold Council attributed the outflows to lower gold prices and changing expectations around US interest rates. Hawkish signals from the new US Federal Reserve leadership, coupled with inflation concerns linked to the US-Iran conflict, strengthened the US dollar and raised bond yields, making non-interest-bearing assets such as gold less attractive in the short term.
Despite this, the Council believes investor demand could stabilise in the second half of the year as geopolitical risks, slower global economic growth and financial market uncertainty continue to reinforce gold’s appeal as a safe-haven asset.
Europe also experienced outflows in June, with investors withdrawing US$818 million, although the region still posted US$3.2 billion in net inflows during the first half of the year.
Asia, meanwhile, recorded its first major setback after leading global demand earlier in the year. Investors withdrew US$2.3 billion during June, largely from China, where stronger equity markets and lower gold prices encouraged a shift into riskier assets. Japan also saw outflows following higher domestic interest rates.
India was the exception, attracting fresh investment as buyers viewed the price decline as an opportunity to increase their exposure to gold.
Beyond investment flows, activity across the global gold market remained exceptionally strong.
The World Gold Council said average daily gold trading volumes reached a record US$488 billion during the first half of 2026, reflecting sustained participation from institutional and retail investors despite recent price volatility.
For Zimbabwe, the strong trading activity and positive first-half investment flows suggest that global demand for gold remains fundamentally intact.
While higher interest rates and a stronger US dollar could continue to create short-term price swings, persistent geopolitical uncertainty and concerns over the global economy are expected to keep gold well supported through the remainder of the year, providing a favourable outlook for Zimbabwe’s gold sector.
