WGC - Gold Demand Trends, Q2 2023

The Q2 2023 edition of Gold Demand Trends highlights several key trends in the gold market. One of the most notable is the record high gold prices seen in Q2 2023, driven by strong investment demand and a weaker US dollar. Mine production is also expected to set a new record in 2023, absent any unforeseen shutdowns. Recycling was higher than anticipated in Q2 2023, due in part to a relatively high gold price and squeezed households. However, investment in gold suffered from the return to positive interest rates, with savers opting to hold cash in bank accounts instead. ASEAN markets saw universal year-over-year declines in Q2 2023, with investors holding back from buying at high price levels. Technology demand for gold was in line with expectations, but weakness in the sector is expected to normalize by the end of the year. Central bank demand for gold was weaker than expected in Q2 2023, due in part to Turkey's large contribution to the decline. However, the underlying trend remains positive. Overall, the report suggests that while there are some headwinds facing the gold market, such as rising interest rates and weaker central bank demand, the underlying fundamentals remain strong, with robust demand from consumers and investors alike.