The World Gold Council (WGC) released its latest Gold Demand Trends report saying that annual gold demand in 2022 increased by 18 percent year-on-year at 4,741 tonnes - the highest annual total since 2011. Boosted by a record fourth quarter, demand for gold was propelled by hefty central bank-buying and persistently strong retail investment, said the global experts on gold.
Gold jewellery demand softened slightly in 2022, down 3 percent at 2,086 tonnes. This weakness was largely driven by the marked drop in Chinese annual gold jewellery demand, down 15 percent as consumer activity was curtailed by ongoing COVID-19 lockdowns for most of the year. The gold price rally in Q4 also contributed to the annual decline in gold jewellery demand.
Total annual supply in 2022 continued its gentle upwards trajectory, up by 2 percent year-on-year to 4,755 tones and remaining above pre-pandemic levels. In particular, mine production increased to 3,612 tonnes – a four year high.
Louise Street, senior markets analyst from WGC said: “We will likely see jewellery consumption remain resilient, bolstered by a release of pent-up demand as China re-opens; but possibly dragged down by the squeeze on consumer spending if there is a more severe downturn. While there are several possible outcomes, gold has a precedent for performing well in turbulent economic times, highlighting its value as a long-term, strategic asset.”
10-02-2023
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