Global demand for gold rose by 4% year-on-year (YoY) to 1,258 tonnes in the second quarter (Q2) of 2024, according to a report by the World Gold Council (WGC).

The growth in demand was driven by a 53% YoY surge in over-the-counter (OTC) transactions to 329 tonnes, the report said.

The WGC cited Increased OTC demand, continued buying from central banks, and a slowdown in exchange-traded fund (ETF) outflows as drivers of the increase in gold prices by 18% YoY to an average of $2,427 per ounce in Q2-24.

Central banks added 183 tonnes to reserves in Q2, slowing from last quarter but up 6% YoY. The WGC expects buying to continue due to diversification needs.

Bar and coin demand fell 5% as coin purchases dropped, though Asia retail investment offset declines elsewhere. ETFs shed 7 tonnes after heavy European outflows in April.

Andrew Naylor, Head of Middle East and Public Policy at the World Gold Council, commented: “Looking ahead, economic conditions and investor sentiment will play crucial roles in shaping regional demand dynamics in the second half of 2024 and it is likely that the high price will remain a headwind for gold demand.”

“On the other hand, global trends such as geopolitical instability and potential interest rate cuts could positively influence gold demand,” Naylor added.

All Rights Reserved - Mubasher Info © 2005 - 2022 Provided by SyndiGate Media Inc. (Syndigate.info).