MINING REFINING

South Africa: Gold Demand Hits Q2 Record As Price Maintains Glittering Surge to New Peaks

Tue July 30 2024

Global demand for gold scaled new highs for the second quarter (Q2) of a calendar year in 2024, underpinning the precious metal's run to record-high prices.

The gold price remains on an absolute tear, scaling new highs this year as central banks diversify their reserve holdings and investors seek safe havens amid rising geopolitical tensions and uncertainty.

According to data compiled by the World Gold Council, the precious metal hit a record high of $2,480.25 an ounce on 17 July, and it remains within spitting distance of that peak.

The council's latest quarterly Gold Demand Trends report shows global gold demand rose 4% year-on-year in Q2 2024 to 1,258 tonnes, a Q2 record in its data series since 2000. The gold price averaged $2,338 an ounce during the quarter, which ended 30 June, 18% higher year-on-year.

Key drivers

The key drivers were central bank demand, which declined from Q1 but rose 6% year-on-year to 183 tonnes.

Central banks, notably those in emerging markets, have been on a gold-buying binge in a diversification drive away from dependence on the US dollar as a reserve currency.

"Our annual central bank survey confirmed that reserve managers believe gold allocations will continue to rise over the next 12 months, driven by the need for portfolio protection and diversification in a complex economic and geopolitical environment," the World Gold Council...

Source: https://allafrica.com/