Last year was the strongest year for gold demand in over a decade, according to the World Gold Council’s latest Gold Demand Trends report released yesterday.
Annual gold demand (excluding over-the-counter) in 2022 increased by 18% year-on-year, hitting 4 741 tonnes – the highest annual total since 2011.
Boosted by a record fourth quarter, demand for gold was propelled by hefty central bank-buying and persistently strong retail investment, the report said.
A second consecutive quarter of huge central bank demand (417 tons) took annual buying in the sector to a 55-year high of 1 136 tons, the majority of which was unreported.
The report said gold bars and coins continued to hold favour with investors in several countries around the world, which helped to offset weakness in China.
Total European gold bar and coin investment for 2022 surpassed 300 tons, aided by persistently robust German demand. There was also significant growth in the Middle East, where annual demand increased by 42% year-on-year.
Meanwhile, jewellery demand softened slightly in 2022, down 3% at 2 086 tons. This weakness was largely driven by the marked drop in Chinese annual jewellery demand, down 15%, as consumer activity was curtailed by ongoing Covid-19 lockdowns for most of the year. The gold price rally in quarter four also contributed to the annual decline in jewellery demand.
Louise Street, a senior market analyst from the World Gold Council, said: “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… In the end, overall investment demand was up 10% on the previous year.”
BUSINESS REPORT