• Record Gold Demand: Surged to $132 billion in Q2 2023, a 45% increase from the previous year
  • Strong Investment Trends: Gold-backed ETFs and bar/coin investments thrived amid global uncertainty, marking the strongest half since 2013
  • Central Bank Activity: Central banks added 166 tons to reserves, maintaining strong interest in gold despite a slight slowdown in purchases

                   

 

Harare- The demand for gold grew significantly in the second quarter, reaching a record value of $132 billion, a 45% increase from the previous year according to the World Gold Council.

The total amount of gold demanded, including investments made outside regular markets, rose by 3% to 1,249 tons.

“This growth was largely driven by strong interest in gold-backed exchange-traded funds (ETFs), fuelled by uncertainty in global trade, geopolitical tensions, and rising gold prices, the Council said.

Investors in gold bars and coins also contributed, drawn by gold’s reputation as a safe investment during uncertain times.

This marked the strongest first half for bar and coin investments since 2013.

Central banks continued to play a major role in gold demand, adding 166 tons to their reserves.

While their buying slowed slightly, their interest in gold remaine strong.

Meanwhile, demand for gold jewellery showed mixed trends: the amount of gold used dropped to near 2020 pandemic levels, but the money spent on jewellery increased globally due to higher gold prices.

The technology sector faced challenges due to potential U.S. tariffs, which put pressure on gold used in electronics.

However, demand for gold in AI-related technologies remained a bright spot. The average gold price hit a record $3,280.35 per ounce, up 40% from last year and 15% from the previous quarter.

 A new price peak was reached in June.

Gold supply grew by 3% compared to last year, with mine production hitting a record 909 tons.

However, recycling of gold remained low despite high prices, as Indian consumers preferred to trade old jewelry for new pieces or use it as loan collateral.

Additionally, off-market (OTC) investments and changes in gold stocks added 170 tons to demand, with strong interest from wealthy global investors and institutions.

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