Global Gold Demand Remains Flat Amid Record Highs and Shifts in Market Dynamics
The World Gold Council (WGC) reported that global gold demand remained flat year-over-year at 1,269 tonnes in the April-June quarter. This is a slight moderation from record highs seen earlier this year.
The total demand for gold in the first half of the year rose 2% year-over-year to an estimated 2,522 tonnes, worth $380 billion. Investment in gold ETFs (exchange-traded funds), bars, and coins dropped to 262 tonnes in the second quarter due to lower gold prices.
However, demand in the over-the-counter (OTC) market stood at 327 tonnes in the second quarter, with Asian investment playing a significant role. Central banks added a net 289 tonnes to their reserves during the April-June quarter, up 62% year-over-year.
High prices continued to weigh on jewellery demand, which fell 17% year-over-year as consumers bought less gold and shifted towards lighter products.