The World Gold Council’s latest Gold Demand Trends report reveals that gold demand (excluding OTC) in the second quarter was down 8% year-on-year to 948t. Gold demand for the first half of 2022 is up 12% compared to H1 2021at 2,189t. The gold price dropped in the second quarter of 2022 as investors shifted their focus to rapidly rising interest rates and a strikingly strong US dollar. The 6% decline in the gold price over the quarter impacted gold ETFs, which saw outflows of 39t in Q2. Net H1 inflows totalled 234t, compared to 127t of outflows in H1 2021.
Gold bar and coin demand remained stable year-on-year at 245t in Q2. There was a 12% year-on-year decline in global bar and coin demand to 526t in H1. In the jewellery sector, Q2 gold demand increased 4% year-on-year to 453t, helped by a recovery in Indian demand, up 49% compared with Q2 2021. Central banks were net buyers in Q2, growing global official reserves by 180t. Turning to the technology sector, demand for gold was down 2% from Q2 2021 at 78t, and as a result, H1 2022 demand was marginally lower year-on-year at 159t. Mine production for the first half of the year hit record highs in our Gold Demand Trends data series reaching 1,764t, up 3% on H1 2021.
Louise Street, Senior Analyst EMEA at the World Gold Council, said, “As many countries face economic weakness and the cost-of-living crises continues to squeeze spending, consumer driven demand will likely soften, although there should be pockets of strength.”
