OTC investment and central banks remained decisive

Gold demand excluding OTC in Q2 was down 6% y/y to 929t as a sharp decline in jewellery consumption outweighed mild gains in all other sectors. Adding in OTC investment to total gold demand yields a 4% y/y increase to 1,258t - the highest Q2 in our data series back to 2000.

The record gold price environment took its toll on Q2 jewellery consumption: volumes fell 19% y/y to a four-year low of 391t.

Central bank net gold buying was 6% higher y/y at 184t, driven by the need for portfolio protection and diversification.

A minor 7t decline in global gold ETF holdings in Q2 compared positively with the 21t drop in Q2'23. Sizable early outflows were followed by nascent later inflows.

Retail bar and coin investment was 5% lower at 261t, primarily due to weak demand from Western markets.

Gold used in technology jumped 11% y/y, as the AI trend continued to drive demand in the sector.