The World Gold Council (WGC) reported a 4% year-on-year increase in global gold demand for Q2 2024, reaching 1,258 tonnes, the highest for a second quarter in their data series.
This surge was primarily fueled by:
- Robust over-the-counter (OTC) transactions: OTC demand saw a significant increase of 53%, reaching 329 tonnes, countering the impact of record-high gold prices on jewelry consumption.
- Continued central bank buying: Central banks continued to purchase gold, with net buying rising 6% year-on-year to 184 tonnes, driven by the need for portfolio diversification and protection against inflation.
- Slower ETF outflows: While there was a decline in gold ETF holdings, it was less pronounced compared to the same period in 2023.
The average gold price reached a record $2,338 per ounce in Q2, impacting jewelry consumption. Mine production hit a record high for a second quarter, reaching 929 tonnes.
Recycling supply also increased, reaching the highest level for a second quarter since 2012, driven by higher gold prices.
Overall Outlook: The WGC expects revived Western investment flows in the second half of 2024 to potentially offset weaker consumer demand and slower central bank buying.
World Gold Council (WGC):
The World Gold Council (WGC) is a non-profit organization established in 1987 by leading gold mining companies. Its mission is to promote and sustain the demand for gold, working across all parts of the industry. The WGC is headquartered in London, with offices in other key markets like India, China, Singapore, the UAE, and the United States.
The WGC has significantly impacted the gold market, playing a crucial role in increasing demand, improving transparency, and promoting responsible practices. Its initiatives have helped to make gold a more accessible and attractive investment option for individuals and institutions.