๐๐๐ Gold Demand Hits #Q2 Record High, Driven by Central Bank Purchases, World Gold Council Reports
The World Gold Council's Q2 2024 report reveals that gold demand reached its highest level for a second quarter since 2000. This increase is attributed to central bank purchases and over-the-counter (#OTC ) investments, with central bank gold buying up by 6% and technology sector demand rising by 11%.
Record Gold Demand in Q2 2024
According to the report released on July 30, Q2 2024 saw the highest gold demand for this period since records began in 2000. Although gold demand excluding OTC #investments decreased by 6% year-on-year to 929 tonnes due to a sharp drop in jewelry consumption, the inclusion of OTC investments led to a 4% year-on-year increase, reaching 1,258 tonnes.
Key highlights from the report include:
1. Central banks increased net gold purchases by 6% year-on-year to 184 tonnes, driven by a need for portfolio protection and diversification.
2. Jewelry demand fell 19% year-on-year to 391 tonnes, marking a four-year low, largely due to record-high gold prices, which averaged $2,338 per ounce in Q2 and peaked at $2,427 per ounce in May.
3. Total gold supply grew by 4% year-on-year to 1,258 tonnes, with mine production hitting a second-quarter record of 929 tonnes. Recycling supply also reached its highest level for a second quarter since 2012 in response to rising gold prices.
4. Global gold exchange-traded fund (ETF) holdings declined by 7 tonnes in Q2, and retail bar and coin investment dropped by 5% to 261 tonnes, mainly due to weak demand from Western markets.
5. Gold used in technology surged by 11% year-on-year, driven by increased demand from the AI sector.
Source - news.bitcoin.com
