NEW DELHI: Global gold demand in Q2 2024, excluding over-the-counter (OTC) transactions declined by 6 per cent year-on-year (y/y) to 929 tonnes, primarily due to a sharp fall in jewellery consumption according to the latest report of World Gold Council.
However, when including OTC investment, total gold demand increased by 4 per cent y/y to 1,258 tonnes, marking the highest Q2 figure since data collection began in 2000.
The record-high gold prices took a significant toll on jewellery consumption. Volumes fell 19 per cent y/y to 391 tonnes, the lowest in four years.
The report reveals a mixed picture for the Indian market in the second quarter of 2024. While overall gold demand showed a modest increase due to investment in OTC markets and central bank purchases, India witnessed trends that reflect broader market shifts.
This decline reflects the impact of elevated gold prices on consumer purchasing behaviour, particularly in markets sensitive to price fluctuations, including India. Central banks continued to be significant players in the gold market, with net gold buying increasing by 6 per cent y/y to 184 tonnes.
This rise is attributed to the need for portfolio protection and diversification in a volatile economic environment. In June alone, central banks reported net purchases of 12 tonnes, with key contributors including the Central Bank of Uzbekistan and the Reserve Bank of
India, both adding 9 tonnes to their reserves.
The Monetary Authority of Singapore was noted as the largest seller, offloading 12 tonnes in the same month.
The LBMA (PM) gold price averaged a record USD 2,338 per ounce in Q2 2024, up 18 per cent y/y and 13 per cent quarter-on-quarter (q/q). Gold prices peaked at a new high of USD 2,427 per
ounce in May.