- World Gold Council’s Q2 2024 report shows record gold demand
- It’s driven by central bank purchases, which are up by 6%
- And technology sector demand, up by 11%
- Gold supply also grew by 4% year-on-year
The latest report from the World Gold Council says that the second quarter of 2024 saw the highest global gold demand in the second quarter since 2000.
It reached a total of 1,258 tons, up 4% year-on-year.
Where Is This Strong Demand for Gold Coming From?
This surge can be attributed to significant central banks buying and strong over-the-counter (OTC) investment, which increased its gold holdings by 6% year over year, adding 184 tons.
The purpose of this is to diversify and protect the portfolio, which is especially relevant if we remember that the banking system is in a risky position, and Bitcoin is a defense against this; you can read more about it here.
Also, statements by Trump and other US politicians regarding uncertainty about the stability of the dollar and the creation of the US strategic reserve for Bitcoin may play a big role in this. This may be logical, as the Banks are in clearcompetition for such initiatives, and their role could be significantly improved if they purchase a more stable asset like classic gold.
What Is the Performance of Other Sectors?
The technology sector also saw a marked increase in gold demand, rising 11% year-on-year. Some view continued advances and demand from the artificial intelligence industry as key factors in this.
However, there are also falling sectors, such as jewelry consumption, which fell sharply by 19% to 391 tons, the lowest level in four years.
Also, global gold exchange-traded fund (ETF) holdings are down 7 tons. However, this decline is an improvement over the 21-ton drop in the same period last year.
Conclusions
These are not the first events regarding the movement of the gold price. In the context of global events, uncertainty about the dollar, and attempts by many countries to cut their dependence on it, classic and digital gold is starting to attract increasing interest from investors.
Let’s examine closely the future position of the US economy and the main reserve currency, which should directly affect these indicators.
