Article Summary: On July 28, 2026, major global gold holding enterprises released their Q2 holdings reports. Barrick Gold increased hedges against inflation, Chinese gold enterprises faced pressure on mining and processing costs, and gold ETF holdings slightly declined. This article provides an in-depth interpretation of market dynamics and investment strategies.
On July 28, 2026, as major global gold mines and gold ETFs successively released their second-quarter holdings data, market focus once again turned to changes in gold enterprise holdings and cost control. Data showed that international gold prices remained in a high range during Q2, with average prices rising 2.3% from Q1, but gold enterprises generally saw rising mining and processing costs, leading to diverging profitability.
Barrick Gold: Increased Gold Call Options to Hedge Against Inflation
Barrick Gold, the Canadian gold mining company, disclosed in its latest holdings report that it increased holdings of gold call options worth approximately $1.2 billion in Q2, while reducing some long positions in long-term Treasury bonds. The company's CFO stated that this move aims to hedge against persistent inflationary pressures and exchange rate risks from the weakening US dollar index.
Barrick Gold produced 1.1 million ounces of gold in Q2, up 4% year-on-year, mainly due to capacity increases at its Nevada gold mine and the Kibali gold mine in the Democratic Republic of the Congo. However, its all-in sustaining costs (AISC) rose from $980 per ounce in the same period last year to $1,045 per ounce, primarily driven by rising labor costs and higher energy prices.
Chinese Gold Enterprises: Pressure on Mining and Processing Costs, but Gold ETF Holdings Slightly Declined
Major Chinese gold enterprises such as Shandong Gold, Zijin Mining, and Chifeng Gold showed similar trends in their Q2 holdings reports. Shandong Gold reported Q2 gold production of 32 tons, up 5.6% year-on-year, but mining and processing costs rose 8% year-on-year to 265 yuan per gram (approximately $1,230 per ounce), mainly due to increased difficulty in deep mining and higher environmental compliance costs.
Zijin Mining kept its cost increase within 3% by optimizing the operational efficiency of its overseas gold mines, which contributed 65% of its total output. Additionally, Zijin Mining increased its stake in Barrick Gold by about 2% in Q2 as part of its strategic investment.
As for gold ETF holdings, as of June 30, 2026, the total holdings of major domestic gold ETFs (such as Huaan Gold ETF and E Fund Gold ETF) edged down 0.8% from the end of Q1 to 87.5 tons. Industry insiders pointed out that this was mainly due to some investors taking profits, but allocation-oriented funds remained stable.
Global Gold Holdings Landscape: Central Bank Gold Purchases Slow, Producers' Hedging Inclination Increases
According to the latest data from the World Gold Council, global central banks net purchased 158 tons of gold in Q2, down from 183 tons in Q1. Among them, the People's Bank of China increased its gold holdings by 8 tons in Q2, continuing its accumulation trend since 2025; the Reserve Bank of India added 12 tons, becoming one of the largest buyers in Q2.
Among gold producers, forward hedging positions increased by about 35 tons in Q2, indicating concerns among some gold enterprises about a potential pullback in gold prices. However, the world's largest gold producer, Newmont Mining, stated that it would not actively hedge and would maintain exposure to gold prices to benefit from price increases.
Market Interpretation: Gold Prices Fluctuate in the Short Term, Still Supported in the Medium to Long Term
Regarding the latest holdings reports, renowned precious metals analyst James Steel pointed out that the increase in options and hedging positions by gold enterprises reflects market expectations of short-term gold price volatility; however, persistent global inflation, geopolitical tensions, and continued central bank gold purchases will still provide medium- to long-term support for gold prices.
Analysts at Asia REIT Viewpoint believe that when focusing on changes in gold enterprise holdings, investors should pay attention to companies with strong cost control capabilities, such as Zijin Mining and Barrick Gold. Meanwhile, gold ETFs, as convenient allocation tools, often signal when holdings data show significant increases. Investors are advised to combine production guidance and cost expectations from quarterly reports to make rational judgments.
(Data sources for this article: publicly disclosed information from Barrick Gold, Shandong Gold, Zijin Mining, and the World Gold Council. Investment carries risks. Please exercise caution when entering the market.)
