High gold price reflects strong demand
Another year of blistering central bank buying, together with resilient jewellery consumption, offset sizable ETF outflows.
Annual gold demand (excluding OTC) of 4,448t was 5% below a very strong 2022. Inclusive of significant OTC and stock flows (398t), total gold demand in 2023 was the highest on record at 4,899t.
Central bank buying maintained a breakneck pace. Annual net purchases of 1,037t almost matched the 2022 record, falling just 45t short.
Global gold ETFs saw a third consecutive annual outflow, losing 244t. The pace of outflows slowed markedly into year-end, but October’s hefty outflows dominated the Q4 picture.
Annual bar and coin investment saw a mild contraction (-3% y/y) as divergent trends in key Western and Eastern markets offset one another.
Annual jewellery consumption held steady at 2,093t, even in the very high gold price environment. China’s recovery supported the robust global total.
Despite a Q4 recovery in electronics, the annual volume of gold used in technology fell below 300t for the first time in our data series.