Gold Demand Remains Stable Despite Investor Selling Pressure
The World Gold Council released its latest report on gold market trends, showing that global gold demand remained stable at 1,269 tonnes in Q2 of this year. This is broadly unchanged from the same period last year.
Total global demand reached 2,522 tonnes in the first half of the year, a 2% increase year-on-year, while the overall value of demand surged to a record US$380 billion. This was supported by gold prices remaining at historically high levels.
Gold-backed exchange-traded funds (ETFs) recorded net outflows of 44.8 tonnes during Q2, as investors came under selling pressure following the relative decline in gold prices. In North America, higher inflation and interest-rate expectations combined with a stronger US dollar weighed on investor demand.