top of page
Sk Seth Banner NEW FEB.png
    • Jul 30

WGC Q2 2024 Gold Demand Trends

Second quarter gold demand hits record highs, supporting rising prices



The World Gold Council’s Q2 2024 Gold Demand Trends report reveals that total global  gold demand increased 4% year-on-year to 1,258t, marking the strongest Q2 in our  data series1. Total demand was supported by healthy over-the-counter (OTC2)  transactions, up a notable 53% year-on-year at 329t.  


Increased OTC demand, continued buying from central banks, and a slowdown in ETF  outflows drove record-high gold prices in Q2. The gold price averaged US$2,338/oz,  18% higher year-on-year, reaching a record of US$2,427/oz during the quarter. 


Central banks and official institutions increased global gold holdings by 183t, slowing  down from the previous quarter but still reflecting a 6% increase year-on-year. Our  annual central bank survey confirmed that reserve managers believe gold allocations  will continue to rise over the next 12 months, driven by the need for portfolio  protection and diversification in a complex economic and geopolitical environment.  


Global gold investment remained resilient, marginally higher year-on-year at 254t, concealing divergent demand trends. Bar and coin investment decreased 5% to 261t in  Q2, due to a sharp decline in demand for gold coins. Strong retail investment in Asia  was counterbalanced by lower levels of net demand in Europe and North America,  where profit-taking surged in some markets.  

Global gold ETFs saw minor outflows of 7t during the quarter. Asian growth continued,  sizable European outflows in April turned into nascent inflows in May and June, and  North American outflows slowed significantly compared to the previous quarter. 


Record high prices drove down jewellery demand by 19% year-on-year in Q2, but H1  demand remains resilient compared to the same period last year, thanks to a stronger  than expected first quarter. 


In addition, demand for gold in technology continued to increase, jumping 11% year on-year driven primarily by the AI boom in the electronics sector which saw an increase  of 14% year-on-year.  


Total gold supply rose 4% year-on-year, with mine production increasing to 929t.  Recycled gold volumes increased 4% compared to the same quarter in 2023, marking  the highest second quarter since 2012. 






Louise Street, Senior Markets Analyst at the World Gold Council, commented: 

“The rising and record-breaking gold price has made headlines as strong demand from  central banks and the OTC market supported prices, which has been a consistent trend  throughout the year. The OTC market has seen continued appetite for gold from institutional  and high-net-worth investors, as well as family offices, as they turn to gold for portfolio  diversification. On the other hand, demand from jewellery tumbled last quarter as prices  continued to hit highs, which also tempted some retail investors to take profit.  








“Looking ahead, the question is: what will be the catalyst to keep gold front and centre in  investment strategies? With a long-awaited rate cut from the US Fed on the horizon, inflows  into gold ETFs have increased thanks to renewed interest from Western investors. A  sustained revival of investment from this group could change demand dynamics in the  second half of 2024. In India, the recently announced import duty cut should create positive  conditions for gold demand, where high prices have hampered consumer buying.  


“While there are potential headwinds for gold ahead, there are also changes taking place in  the global market that should support and elevate gold demand.” 




For more Updates Do follow us on Social Media


2 views

댓글

bottom of page