Global Demand for Gold Records Best Second Quarter in 24 Years

Global demand for gold increased by approximately 4% year-on-year during the second quarter of this year,
reaching 1,258.2 tons.
This is the highest level for a second quarter since 2000, supported by a 53% surge in over-the-counter transactions during the same period.

Gold

Excluding over-the-counter transactions, global demand for gold fell by 6% year-on-year due to a sharp drop in jewelry consumption, according to the World Gold Council.
According to the report, demand for jewelry fell by 19% to the lowest level in four years at 391 tons, pressured by the high price environment for the precious metal.
For central banks, net purchases of gold amounted to 183.4 tons, representing a 6% year-on-year increase, driven by the need to diversify and protect their investment portfolios, a trend that has continued since late 2020.
On the supply side, gold supply increased by 4% in the second quarter to 1,258.2 tons, supported by rises in both mine production and recycled gold.
Holdings of gold ETFs worldwide saw a decline of 7.2 tons compared to a drop of 21.1 tons in the same quarter last year, continuing the outflows from these funds since the second quarter of 2022.

Yen

Yen Slips from Two-and-a-Half-Month High Ahead of Bank of Japan Meeting

The Japanese yen declined in Asian market trading on Tuesday against a basket of major and minor currencies, extending its losses for the second consecutive day against the U.S. dollar. The yen moved away from its highest level in two and a half months amid ongoing correction and profit-taking activities, as well as reluctance to build new long positions ahead of the highly anticipated Bank of Japan monetary policy meeting.

The regular meeting of the Bank of Japan is set to begin later today, to discuss appropriate monetary policy tools for developments in the world’s third-largest economy. It is likely to announce plans for quantitative tightening, with a clear division over the possibility of a second interest rate hike this year.

Euro

Euro Holds Above Three-Week Low as German Inflation Data Announced

The euro rose in European market trading on Tuesday against a basket of global currencies, holding above its three-week low against the U.S. dollar. This comes with renewed buying activity from corrective levels and hopes for a narrowing interest rate gap between Europe and the United States in September.

Expectations for a European interest rate cut remain below 50%. To reassess these expectations, investors are awaiting the release of key inflation data in Germany, the eurozone’s largest economy, later today, followed by the main inflation data for the entire eurozone for July, scheduled for tomorrow.

Global Demand for Gold Records Best Second Quarter in 24 Years

Global Demand for Gold Records Best Second Quarter in 24 Years

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