HCMC – Global gold demand surged in the second quarter of this year, driven by increased investor appetite, central bank buying, and a slowdown in exchange-traded fund (ETF) outflows, according to the World Gold Council.
Total global gold demand jumped by 4% year-on-year to 1,258 tons, marking the strongest second quarter on record, according to the council’s report. Over-the-counter (OTC) transactions were particularly robust, soaring by 53% year-on-year to 329 tons.
The surge in demand propelled gold prices to record highs, with the average price in Q2 reaching US$2,338 per ounce, up by 18% from the previous year. Central banks continued to stock up on gold, adding 183 tons to their reserves, although the pace of buying slowed from the previous quarter.
Investment demand for gold also remained resilient, with bar and coin purchases edging up marginally. However, the council noted divergent trends across regions, with Southeast Asian nations such as Vietnam experiencing strong growth.
In Vietnam, investors flocked to gold as a hedge against inflation, currency depreciation, and weak performance in the stock and real estate markets. Bar and coin demand climbed by 30% year-on-year to 12 tons, the highest first-half total since 2014.
Record-high prices dampened global gold jewelry demand, with a 19% year-on-year decline in Q2. Vietnam and Indonesia also saw weaker jewelry sales, while Thailand bucked the trend.
