Global gold demand down in Q2

Central bank gold buying accelerates prices, while jewelry consumption declines to 4-year low

The demand for gold excluding the over-the-counter market declined 6% year-on-year in the second quarter of the year to 929 tons, according to the World Gold Council on Tuesday. Gold prices were at an average of $2,338 per ounce in the second quarter, up 18% on an annual basis and 13% on a quarterly basis on the London bullion market. In May, gold prices reached a record of $2,427 per ounce, as the over-the-counter investments in gold totaled 329 tons. At the same time, central bank gold buying went up 6% on an annual basis, accelerating prices upwards in the second quarter. The record-high gold prices negatively affected jewelry consumption, and in turn, the 19% annual decline in jewelry consumption to a four-year low of 391 tons pushed gold demand downwards in the second quarter. Meanwhile, the global gold exchange-traded fund fell 7 tons in the second quarter, easing from a 21 ton decline in last year’s same quarter. Retail bar and coin investment was down 5% due to lessened demand in Western markets. At the same time, as the popularity of artificial intelligence (AI) remains prevalent, gold used in technology hiked 11% on an annual basis. However, gold demand including over-the-counter market increased 4% year-on-year to 1,258 tons, the World Gold Council said.