The COMEX Delivery Crunch: Physical Gold Buyers Pile In as ETF Holders Head for the Exit
26.06.2026 - 14:32:15 | boerse-global.de
An unusual tug-of-war is playing out in gold markets. While speculative investors have been dumping paper positions at an accelerating pace, industrial buyers are demanding record volumes of the actual metal. The tension is most visible at the COMEX, where the June contract expiry has triggered a rush for physical delivery.
Some 38,600 gold futures contracts are now set for physical settlement — equivalent to roughly 120 tonnes of bullion. That is the highest tally since February, a sign that long-term investors are opting to take delivery rather than accept cash settlement. The move underscores a deepening distrust in paper-based gold exposures as the metal’s spot price struggles to hold ground.
The spot price has been under relentless pressure. After briefly dipping below the psychologically important $4,000 mark earlier this week, gold was last trading at $4,049.70 per ounce. That represents a weekly decline of nearly 3% and a 30-day drop of roughly 9%. From the all-time high struck in January, gold now sits almost 28% lower.
The main culprit is the US dollar, which has climbed to its strongest level in over a year. Federal Reserve Chair Kevin Warsh has reiterated his commitment to price stability, and markets are now pricing in a possible rate hike as soon as September. A stronger dollar makes dollar-denominated assets more expensive for international buyers, and gold’s zero-yield status leaves it especially vulnerable to rising interest rates.
Should investors sell immediately? Or is it worth buying Gold?
Adding to the headwinds, easing geopolitical tensions have eroded safe-haven demand. The gradual normalization of shipping traffic through the Strait of Hormuz, following a period of heightened risk, has removed a key risk premium from the gold price.
Yet while paper gold is in retreat, central banks are buying at a furious pace. Global official sector purchases totalled a net 244 tonnes in the first quarter of 2025, according to the data. China’s central bank has now added to its reserves for 18 consecutive months, while Poland has been a prominent buyer. Total gold demand including over-the-counter transactions reached a record 1,231 tonnes for the first quarter — a 3% increase year-on-year.
That surge in physical absorption is reflected in the COMEX delivery numbers. The current pile-up of delivery requests — concentrated among commercial and industrial users — suggests that this is not a short-term blip but a structural rebalancing. On the other side of the ledger, Western gold ETFs have continued to bleed outflows, with investors rotating out of the metal in response to the hawkish Fed.
Technical indicators point to a market that may be oversold in the near term. The relative strength index currently stands at 34.3 points — a level that historically has coincided with short-term bottoms. Whether that floor holds depends on whether the physical buying momentum can absorb the pressure from the dollar and rising yields.
Gold at a turning point? This analysis reveals what investors need to know now.
Asia is also building infrastructure to support its growing appetite for physical gold. Singapore plans to launch its own clearing system for stored bullion by the end of the year, and Hong Kong is preparing a similar initiative. The goal is to reduce dependence on the traditional trading hubs of London and New York — a logical step given that Asian countries now account for 70% of global gold demand.
For now, the gold market remains a story of two opposing forces: a deteriorating paper price driven by macro headwinds, and a physical market that refuses to cool. The outcome of this struggle will heavily influence whether gold can stabilise near current levels or suffers another leg lower.
Ad
Gold Stock: New Analysis - 26 June
Fresh Gold information released. What's the impact for investors? Our latest independent report examines recent figures and market trends.
