World demand for gold decreased by 6%

In the second quarter of 2024, global demand for gold (excluding OTC transactions) decreased by 6% compared to the same period last year, reaching 929 tons, according to the World Gold Council (WGC). 

The drop in demand for jewelry was the main reason for the decline: demand fell by 19% to 391 tons, and demand from the jewelry industry decreased by 17% to 411 tons. 

However, the decline in the jewelry market was partially offset by an increase in demand in other sectors. In particular, the technology sector showed an impressive 11% increase in gold consumption, to 81 tons, due to the use of gold in electronics, especially in chips for the rapidly developing field of artificial intelligence. 

Central banks, seeking to protect and diversify their reserves, increased gold purchases by 6%, to 183 tons. 

The supply of gold on the market increased by 4%, to 1,258 tons. Production turned out to be a record for the second quarter — 929 tons. 

The oversupply of 329 tons was absorbed by the OTC market, which played a significant role in maintaining gold prices. Together with the demand from central banks, the OTC market has become a key driver of gold price growth.