The World Gold Council’s Gold Demand Trends Report reveals an annual gold demand (excluding OTC) in 2022 increased by 18% year-on-year, hitting 4,741t – the highest annual total since 2011.
Demand for gold was boosted by hefty central bank-buying and persistently strong retail investment. Gold bars and coins continued to hold favour with investors in several countries around the world, which helped to offset weakness in China. Total European gold bar and coin investment for 2022 surpassed 300t, aided by persistently robust German demand. The increase was the result of two factors: a notable slowdown in ETF outflows and strong gold bar and coin demand. The World Gold Council’s Gold Demand Trends Q4 and FY 2022 report includes comprehensive data provided by Metals Focus.
Louise Street, Senior Markets Analyst from the World Gold Council, said, “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.”Rising interest rates prompted some tactical ETF outflows, while elevated inflation spurred on gold bar and coin investment. Economic forecasts are pointing to a challenging environment and a likely global recession which could lead to a role reversal in gold investment trends.