Gold's 'big month'

RECORD global June-quarter mine production contributed to Q2 gold supply of 1186.7 tonnes in a period when gold demand grew 8% year-on-year to 1123t, according to the World Gold Council’s latest Gold Demand Trends report.
Gold's 'big month' Gold's 'big month' Gold's 'big month' Gold's 'big month' Gold's 'big month'

Staff reporter

The WGC said central bank buying and sustained growth in gold-backed exchange-traded funds were key drivers of the surge in demand, which got to 2181.7t in the first half.

Mine production hit 882.6t in the latest quarter, and recycled tonnes were 314.6t as the gold price went through US$1400/oz for the first time since 2013.

The WGC said central banks bought 224.4t of gold in Q2 2019 and 374.1t in the first half of 2019 - the "largest net H1 increase in global gold reserves in our 19-year quarterly data series".

A strong recovery in India's jewellery market pushed demand in Q2 up 12% to 168.8t, while China led dipping bar and coin usage.

"June was a big month for gold," said WGC head of market intelligence, Alistair Hewitt.

"The price broke out of a multi-year trading range to hit a six-and-a-half year high and gold-backed ETF assets-under-management grew by 15% - the largest monthly increase since 2012.

"As we head into H2, we believe the factors underpinning ETF inflows and central bank buying, including looser monetary policy and geopolitical uncertainty, will continue. Consumer demand, however, may be a bit soft as people adapt to the higher price level."