Monitoring Desk
ISLAMABAD/ANKARA: Owing to robust central bank purchases and strong retail investment, the world’s demand for gold reached a new decade-high of 4,741 tonnes in 2022.
The World Gold Council‘s report, ‘The Gold Demand Trends,’ on Tuesday showed that gold demand rose 18 percent from last year.
Louise Street, a senior markets analyst from the World Gold Council, said, “Previous year, we witnessed the highest level of annual demand of gold in over a decade, driven in part by colossal central bank demand for the haven asset.”
The council said that central bank demand increased 152 percent annually to 1,136 tons in 2022, a 55-year record high, adding “the majority of that was unreported.”
Demand for gold bars, coins
Investment demand (excluding over-the-counter) climbed by 10 percent from a year earlier to 1,107 tonnes in 2022, driven by the massive demand for gold bars and coins and a noteworthy reduction in ETF [exchange-traded fund] withdrawals.
Rising interest rates forced some tactical ETF outflows, and higher inflation boosted investment in gold bars and coins. According to Street, “gold’s multiple demand drivers played a balancing act.” Jewelry consumption decreased by 3 percent to 2,086 tons last year due to a hike in gold prices in the 4th quarter.
Demand for gold in technology decreased by 7 percent in 2022 as worsening global economic conditions halted demand for consumer electronics.
In 2022, the total annual gold supply ticked up 2 percent per year to 4,755 tons, while mine production increased to a four-year high of 3,612 tons.
