Gold Demand In Q2 Was 8% Lower YoY Basis: World Gold Council

According to a recent report by World Gold Council or WGC, gold demand (excluding OTC) was 8% lower y-o-y at 948t globally, combined with Q1 this took H1 demand to 2,189t, increased by 12% y-o-y.

WGC stated, "The LBMA Gold price PM averaged US$1,871/oz in Q2, 3% above the Q2'21 average. However, this comparison conceals the 6% decline in the price during the most recent quarter, pressured by rising interest rates and the rocketing value of the US dollar. As the gold price fell in Q2, gold ETFs lost 39t, giving back some of the strong Q1 gains. Net H1 inflows totaled 234t compared with 127t of outflows in H1'21." Bar and coin investment (245t) has been the same as the Q2'21 data, due to a sharp drop in China was offset by growth in India, the Middle East and Turkey. H1 recorded a 12% y-o-y drop to 526t on compounded Chinese weakness.

Jewellery consumer demand increased

WGC additionally informs that Q2 jewellery consumer demand reached 453t, which was 4% higher y-o-y. But the comparison is with a fairly weak Q2'21. Total H1 jewellery demand of 928t was 2% below H1'21. Central banks continued to buy gold. Global official gold reserves grew by 180t in Q2, taking H1 net purchases to 270t. However, technology demand has fallen in Q2, down 2% y-o-y to 78t on weaker demand for consumer electronics. H1 demand was fractionally lower as a result at 159t.