OTC Q1 gold demand surges 220% on 2023

Last year, gold was basically considered a rock stuck in a hard place, as the precious metal had lost much of its allure for investors. 

During 2023, the global investment demand for gold was the lowest it had been since 2014. The low demand was largely driven by global ETFs registering its third year of net negative tonnage demand, as previously reported

On 30 April 2024, the World Gold Council released its ‘Gold Demand Trends Q1 2024’, which revealed over-the-counter (OTC) demand was “significant” for the first quarter of the year. 

During Q1 2024, OTC buying by investors has been reflected in the pace and scale of the rising gold price, with 136.4 tonnes marking a 220% year on year increase in comparison to 42.7 tonnes during Q1 2023, as reported by the council. 

The only supply demand that matched the previous quarter was gold bars and coins at 312 tonnes, translating to a 3% year on year increase. 

However, the World Gold Council reports that the first quarter’s overall gold demand actually decreased 5% year on year to 1,102 tonnes, due to continued exchange-traded funds (ETF) outflows. 

Given the price rally that saw gold break a new record of $3,331 in late March, the World Gold Council says the jewellery sector was “healthy” in Q1 2024. 

According to the council, global jewellery consumption was 2% lower year on year at 479 tonnes, while jewellery fabrication grew 1% over the same period  to 535 tonnes. 

Further, technology demand for gold recovered 10% year on year, as the artificial intelligence boom boosted demand within the electronics sector. 

Mine production also increased 4% year on year to 893 tonnes,  which the council reports as a record first quarter for its data series. 

As well as gold mining production increasing, recycling responded to higher prices, increasing 12%year on year to 351 tonnes. 

This is the highest quarter of recycling supply since Q2 2020, when it spiked in line with the price and as a response to the global COVID-19 pandemic. 

Write to Aaliyah Rogan at Mining.com.au   

Images: iStock
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.