Global gold demand soared to decade high in 2022: WGC

Central banks’ demand more than doubled to 1,136 tonnes in 2022, up from 450 tonnes the year before and to a 55-year high.

   
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Annual gold demand in 2022 increased by 18 per cent on a yearly basis, hitting 4,741 tonnes globally, the highest total since 2011, World Gold Council’s latest Gold Demand Trends report revealed.

“It was boosted by a record fourth quarter, demand for gold was propelled by hefty central bank-buying and persistently strong retail investment,” the report said.

Central banks’ demand more than doubled to 1,136 tonnes in 2022, up from 450 tonnes the year before and to a 55-year high. “Last year we saw the highest level of annual gold demand in over a decade, driven in part by colossal central bank demand for the safe haven asset,” Louise Street, a senior market analyst from the World Gold Council, said.

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“Gold’s diverse demand drivers played a balancing act as rising interest rates prompted some tactical ETF (exchange-traded fund) outflows, while elevated inflation spurred on the gold bar and coin investment. In the end, overall investment demand was up 10 per cent on the previous year,” she added.

Turning to 2023, Street said economic forecasts are pointing to a challenging environment and a likely global recession, which could lead to a reversal in trends for investment in gold.

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