The price of gold has been hitting records recently, and global demand continues to grow. This is a result of the popularity of the royal metal in Asian countries, purchases by central banks, and the development of new technologies. In our country, the gold market is also holding strong, and experts from Goldsaver estimate that Poles bought about 7 tonnes of precious metal in the first half of 2024.
According to the World Gold Council (WGC), in the second quarter of 2024, total gold demand increased by 4% compared to the same period last year, reaching 1258 tonnes. It was the strongest second quarter in 24 years.
So, what determined such high interest in gold? As data shows, China and India alone consumed over 47% of the demand for gold coins and bars in the second quarter of this year. That’s a significant increase from just under 30% in the second quarter of last year.
“These numbers show how strong the desire to increase gold reserves is in both countries. Not only on the part of institutions, such as central banks, but also amongst citizens,” says Michał Tekliński, a gold market expert.
Demand for gold bars and coins also rose among citizens of Vietnam, Thailand, and Indonesia, while the purchasing activity of Western citizens decreased.
Despite the decreased demand in the West, at the beginning of the third quarter of 2024, there was an increase in investments in Western ETFs (exchange traded funds).
According to Goldsaver estimates, the Polish gold market reached approximately 7 tonnes in the first half of 2024.
The most prized gold product on the domestic market for years has been the one-ounce gold bar. However, gold coins, such as the Australian Kangaroo, have also been moving steadily off the shelves.
As for the future of gold, the WGC report expects a revitalization of investment influx from the West. Centrifugal tendencies from both consumer and potential slower purchases from central banks could alter the dynamics of demand in the second half of 2024.
“Given the upcoming long-awaited cut in interest rates by the US Federal Reserve, the flow into gold ETFs has grown, thanks to renewed interest from Western investors. As for India, the recently announced reduction in import duties should create positive conditions for gold demand, where high prices are hindering consumer purchases,” says Louise Street from the WGC.
Representatives of the World Gold Council conclude that although potential hurdles await gold, there are also changes in the global market that should support and increase the demand for the precious metal in the coming months.
Source: https://managerplus.pl/pierwsze-polrocze-na-rynku-zlota-pod-znakiem-rekordow-cenowych-i-rosnacego-popytu-43970
