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Bhubaneswar: 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 series 1.
Total demand was supported by healthy over-the-counter (OTC 2 ) 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.
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