China - July 31, 2024

Global gold demand up 4% in Q2: World Gold Council

(Voice_over)

The World Gold Council has released a report on gold demand trends in the second quarter of this year. The report says total global gold demand increased to 1,258 tonnes in the second quarter of this year, representing a 4% increase on a yearly basis. The data also reveals the strongest Q2 in the World Gold Council's data series going back to 2000. Central bank net gold purchases marked a 6% increase year-on-year to 184 tonnes, driven by the need for portfolio protection and diversification. Meanwhile, record gold prices had an impact on Q2 jewelry consumption, which saw a 19% drop to a four-year low of 391 tonnes. Similar consumption trends have also emerged in China's gold market. Data from the China Gold Association shows that in the first half of this year, the purchase of gold bars and coins rose about 46%, while gold jewelry purchases - which command a higher premium - fell by nearly 27% compared to the same period last year.

However, despite high gold prices, the CEO of the World Gold Council, David Tait, says he sees no signs of a gold bubble at this moment.

(Sound_bite)

David Tait, CEO, World Gold Council:

"I can't see anything on the rise at the moment that will burst the gold bubble, shall we say. I honestly believe that we are in a rather unique situation where we have the classic geopolitical problems. You’ve got the debt burden, which as I’ve mentioned, and then you’ve got central banks all wanting to add to reserves for a variety of reasons. It's hard to imagine a situation unless peace breaks out tomorrow that gold does not continue if you add that to the reforms that we are putting through the market in London instilling trust, bringing more institutions to the market, greater participation, I can only see gold going one way."