Q2 2024 Sees Record Gold Demand

The World Gold Council's latest report, published on July 30, highlights Q2 2024 trends, showing the highest second-quarter gold demand since records began in 2000.

The World Gold Council (WGC) has released its Q2 2024 report, showcasing the highest second-quarter gold demand since records began in 2000.

According to the report, gold demand excluding over-the-counter (OTC) decreased by 6% year-on-year to 929 tonnes, as a substantial decline in jewelry consumption outweighed gains in other sectors. However, adding OTC investment to total gold demand resulted in a 4% year-on-year increase, reaching 1,258 tonnes — the highest Q2 demand in the council's data series.

The report highlights a 6% increase in central bank net gold buying year-on-year, reaching 184 tonnes, driven by the need for portfolio protection and diversification.

Jewelry demand fell by 19% year-on-year to a four-year low of 391 tonnes, largely due to record-high gold prices, which averaged $2,338 per ounce in Q2 and peaked at $2,427 per ounce in May.

Total gold supply grew by 4% year-on-year to 1,258 tonnes. Mine production of 929 tonnes was a record for a second quarter. Recycling supply was the highest for a second quarter since 2012, responding to the rising gold price.

The report also notes a 7-tonne decline in global gold exchange-traded fund (ETF) holdings in Q2 and a 5% decrease in retail bar and coin investment to 261 tonnes, primarily due to weak demand from Western markets.

Gold used in technology jumped 11% year-on-year, as the artificial intelligence (AI) trend continued to drive demand in the sector.