Global gold demand excluding over-the-counter (OTC) transactions in the second quarter of 2024 decreased by 6% compared to the same period last year and amounted to 929 tonnes, the World Gold Council (WGC) calculated.
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Demand Drop
Due to high gold prices, demand for jewelry fell by 19%, to 391 tons, and accordingly, demand for gold from the jewelry industry also decreased by 17%, to 411 tons.
The decline in the jewelry market was partially offset by increased demand for gold in other industries. In particular, in the technology sector, consumption grew by 11%, to 81 tons, due to the use of gold in electronics, primarily in chips for the increasingly popular AI field.
Central banks, trying to protect and diversify their portfolios, increased gold purchases by 6%, to 183 tons.
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The supply on the gold market increased by 4%, to 1,258 tons. In particular, production was a record for the second quarter – 929 tons.
The excess supply, 329 tons, was absorbed by the OTC market, its share in quarterly purchases was quite significant. Together with demand from central banks, the OTC market became the driver of growth in gold prices.
Gold is growing in price
Earlier, the Ministry of Finance wrote that gold prices rose in Asian trading on Monday, recovering their positions after falling for most of July, as attention switched to the upcoming Fed meeting, where the central bank is expected to give more clues about cutting interest rates.
- Gold