WGC - Gold Demand Trends 4Q 2022

The World Gold Council's 4Q2022 report shows that annual gold demand, excluding Over-the-Counter (OTC), increased 18% to reach 4,741 tonnes. The strong year-end performance was due to a record demand of 1,337 tonnes in the fourth quarter. The jewelry sector saw a slight decline of 3% in 2022, largely due to the rising gold prices in the last quarter. Investment demand reached 1,107 tonnes in 2022, with a 10% increase from the previous year. The demand for gold bars and coins rose 2% to 1,217 tonnes, while holdings of gold ETFs fell by a smaller margin than in 2021. The central banks had a huge demand for gold for the second consecutive quarter, with annual buying reaching a 55-year high of 1,136 tonnes, mostly unreported. On the other hand, demand for gold in technology saw a sharp decline of 7% in 2022 due to the deteriorating global economy. Mine production increased by 2% in 2022, reaching a four-year high of 3,612 tonnes. It is expected that investment will rise in 2023, with gold ETF and OTC demand taking the lead. However, central bank buying is expected to decline, and jewelry demand is expected to improve, with China's reopening presenting growth potential, although recurrent COVID spikes could be a challenge. Total gold supply is expected to rise modestly in 2023, with a production uplift from existing operations, while recycling is expected to decline.