Gold demand pushed by funding demand within the 2nd quarter and first half of the yr – Commerzbank

The World Gold Council has printed knowledge on Gold demand within the second quarter. At slightly below 1,250 tons, demand was 3% greater than within the earlier yr. On condition that the value of Gold rose by greater than 40% in comparison with the identical quarter final yr, that is outstanding. Excluding the residual class “OTC and different,” the rise was even 10.4%, Commerzbank’s commodity analyst Carsten Fritsch notes.

WGC expects considerably stronger funding demand than final yr

“This was primarily resulting from a powerful 78% improve in funding demand, primarily pushed by continued robust ETF inflows. Funding demand thus exceeded the usually stronger demand for jewellery. This displays the elevated demand for Gold as a secure haven, whereas jewellery demand suffered from excessive costs and subsequently remained 14% beneath the earlier yr’s degree. There are additionally indicators of a slowdown in Gold purchases by central banks. These fell by 21% year-on-year to their lowest degree in three years.”

“A take a look at the primary half of the yr exhibits the same image. Funding demand greater than doubled year-on-year to just about 1,030 tons, pushed by robust ETF inflows and sturdy bullion and coin purchases. The latter recorded their strongest first half in 12 years. This was offset by notable declines in jewellery demand and central financial institution Gold purchases.”

“Demand for Gold, together with OTC and others, was 1% greater within the first half of the yr than within the earlier yr (excluding this element, the rise was 13%). For the yr as a complete, the WGC expects considerably stronger funding demand than final yr, however decrease fabrication demand (jewellery, expertise) and decrease Gold purchases by central banks.”