‘Global gold demand in April-June period falls 8% to 948.4 tonnes’

MUMBAI: Global gold demand has seen a year-onyear decline of 8 per cent during the April-June period to 948.4 tonnes and going ahead further monetary tightening and continued dollar strength may pose headwinds, says a report.

According to the WGC Gold Demand Trends Q2 2022 report, the total gold demand during the second quarter of 2021 stood at 1,031.8 tonnes.

The year-on-year demand was affected by increase in gold electronic traded funds (ETFs) outflow, decline in Central banks buying and lower demand from the technology segment, the report said.

After an initial rally in April on geopolitical risks and building inflationary pressure, the gold price dropped by 6 per cent in the second quarter of 2022, as investors shifted their focus to rapidly rising interest rates and a strikingly strong US dollar.

The average gold price during April-June quarter was $1,870 an ounce, without taxes, compared to $1,816 an ounce last year in the international markets, WGC Regional CEO, India, Somasundaram

PR said.

According to the WGC report, during the April-June quarter, the overall investment demand declined by 28 per cent to 205.8 tonnes, compared to 286.1 tonnes in the same period of 2021.

“In the first half of 2022, the global gold market was supported by macroeconomic factors such as rampant inflation and geopolitical uncertainty, but it also faced headwinds from rising interest rates coupled with an almost unprecedented surge in the value of the US dollar,” WGC Senior Analyst EMEA Louise Street said.

And while it has been seen that prices ease from exceptionally high levels in the first quarter, gold has been one of the best performing assets so far this year, she noted.

‘The average gold price during first quarter was $1,870 an ounce, without taxes, compared to $1,816 an ounce last year in the international markets’