Despite a global reduction in gold demand by central banks in the second quarter of 2023, the overall impact on total demand was marginal. Excluding over-the-counter (OTC) transactions, gold demand saw a modest annual decrease of two percent, totaling 921 tons. This decrease stemmed from a notable slowdown in net central bank acquisitions, contrasting with the higher-than-average purchases observed in Q2 2022.
Factoring in OTC trading and gold sourced from existing stockpiles, the total worldwide demand is projected to grow by seven percent annually to reach 1,255 tons in Q2 2023. OTC trading, distinct from exchange trading, involves direct transactions between two parties.
On a global scale, gold for December delivery observed a $9.30 rise to reach $2,009.20 per ounce on Monday. Notably, in June, the WGC reported a reduction of 71 tons in central banks’ official gold reserves during April. Turkey’s sale of 81 tons on its domestic market to meet surging local demand predominantly drove this decrease.
August 3, 2023
Delino Gayweh
Serrari Financial Analyst
photo source Google
