Gold Demand Soars Amid Rising Production Costs and Middle East Uncertainty
The World Gold Council (WGC) reported that global gold mine production rose 2% year-over-year in the second quarter, reaching a record 966 metric tons. This milestone comes with a cost, as all-in sustaining costs climbed to a record $1,785 an ounce in the first quarter, up 16% from a year earlier.
Despite higher production costs, demand for gold remains strong. China and Tether emerged as notable buyers in their respective sectors. Central banks, including Poland's central bank and the People's Bank of China, ramped up buying in the second quarter, with net purchases jumping 62% from a year earlier to a record 289 tons.
Tether, the stablecoin issuer, added 14 tons of physical gold to its stockpile at the end of the quarter, valued at $18.8 billion. Chief Executive Officer Paolo Ardoino said that Tether 'remained one of the world's largest buyers of U.S. Treasuries' and reduced secured lending by $2.38 billion.