HCMC – Global gold demand fell slightly last year but remained above the 10-year average, with Vietnam seeing a mixed picture, according to the World Gold Council’s Gold Demand Trends report.
Vietnam’s 2023 gold demand dropped by 6% year-on-year, with jewelry demand slipping by 16% due to slowing economic growth and inflation.
However, investment demand edged up in the fourth quarter, primarily driven by a price correction, demonstrating its sensitivity to price volatility, according to experts.
“The steady decline in the value of the local currency throughout 2023 further fueled demand, especially amid a fragile economic environment,” said Shaokai Fan, head of Asia-Pacific (ex-China) and Global head of Central Banks at the World Gold Council.
Louise Street, senior markets analyst at the World Gold Council, said, “Unwavering demand from central banks has been supportive of gold demand again this year and helped offset weakness in other areas of the market.”
Central banks purchased 1,037 tons of gold in 2023, while global gold ETF holdings continued to decrease by 244 tons. The fall was primarily driven by outflows in Europe, while other regions such as China, India and the U.S. saw increases in gold ETF holdings.
The World Gold Council forecast that geopolitical uncertainty and global elections would drive demand for gold as a safe haven this year.
