Global gold demand hit a new decade-high of 4,741 tons in 2022, thanks to robust central bank-buying and strong retail investment during the last quarter.
According to the Gold Demand Trends report from the World Gold Council on Tuesday, gold demand rose 18% from the previous year.
“Last year we saw the highest level of annual gold demand in over a decade, driven in part by colossal central bank demand for the safe haven asset,” said Louise Street, senior markets analyst from the World Gold Council.
Central bank demand surged 152% year-on-year to 1,136 tons in 2022, a 55-year record high, the council said, adding “the majority of which was unreported.”
Investment demand (excluding over-the-counter) increased 10% from a year earlier to 1,107 tons in 2022, led by a notable slowdown in ETF [exchange-traded fund] outflows and strong gold bar and coin demand.
“Gold’s diverse demand drivers played a balancing act as rising interest rates prompted some tactical ETF outflows, while elevated inflation spurred on gold bar and coin investment,” Street said.
Jewelry consumption decreased 3% to 2,086 tons last year due to hike in gold prices in the fourth quarter.
Demand for gold in technology dropped 7% in 2022 as deteriorating global economic conditions hampered demand for consumer electronics.
Total annual gold supply ticked up 2% annually to 4,755 tons in 2022, while mine production rose to a four-year high of 3,612 tons.
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