GOLD DEMAND reached its highest annual level since 2011 last year, supported by substantial central bank purchases and resilient demand for physical investment products.
In its report released yesterday, the World Gold Council said global gold demand, excluding over-the-counter transactions, increased 18% during 2022 to approximately 4,741 tonnes.
Estimated central bank buying reached 1,136 tonnes for the year, including approximately 417 tonnes in the final quarter.
The Council noted that the majority of estimated annual central bank demand was unreported. The figures therefore include purchases that had not been publicly disclosed by the institutions involved.
Retail investment also remained firm. Demand for gold bars and coins increased 2% to approximately 1,217 tonnes, according to the Council’s full-year analysis.
Gold-backed exchange-traded funds moved in the opposite direction, with holdings declining by approximately 110 tonnes. However, the withdrawals were smaller than the 189-tonne decline recorded during 2021.
The contrasting results underline the different forces affecting the market. Physical investment and official-sector purchases strengthened overall demand even as some fund investors reduced their holdings.
The report provides a picture of a market in which strong buying from central banks and retail investors coexisted with weaker demand through exchange-traded products.
Disclaimer
This publication is for educational purposes only and does not constitute financial advice. It does not take into account any person’s investment objectives, financial situation or needs. Before making an investment decision, consider whether the information is appropriate to your circumstances and seek advice from a licensed financial adviser where necessary. Past performance is not a reliable indicator of future performance.