WGC: Jewelry Industry’s Q2 Gold Demand Within Long-Term Average

(IDEX Online) – Demand for gold from the global jewelry sector in the second quarter held within the broad upward trend from 2009, according to the World Gold Council (WGC).

Demand from the jewelry industry accounted for more than 50 percent of global gold demand in the second quarter.

Year-on-year comparisons were affected by the surge in demand seen in second quarter of the previous year, but demand was largely in line with its five-year average, the WGC said in its report for the three-month period.

In the investment sector, the gold price followed a narrow sideways range in the second quarter, making a subdued environment for gold investors.

Consequently, bar and coin demand saw a significant reduction from the record high in the second quarter of 2013 and outflows from ETFs (Exchange Traded Funds) slowed sharply.

In the technology arena, demand for gold in technological applications fell modestly to 101 tonnes. Improvements in both the economic environment and consumer sentiment helped stem losses from substitution. However, fabricators in all segments continue to look for cheaper alternatives to gold in order to manage costs, the WGC said.

Among the world’s central banks, there was a “solid element of demand” with net purchases of 118 tonnes in the second quarter, representing a 28 percent increase year-on-year.

In terms of gold supply, there was an increase of 10 percent, owing to a 13 percent increase in mine supply in the second quarter, while recycled gold was little changed.