According to BNY’s Geoff Yu, citing World Gold Council (WGC) data, central bank gold purchases experienced a significant rebound in the second quarter of 2024, reaching a record 289 tons, with Poland and China leading the buying activity [1]. This sharp increase followed a notably weak first quarter, where official sector gold buying was revised down to only 57 tons, marking the lowest start to a year in over a decade and a reduction of 187 tons from previous estimates [1].
Despite the Q2 recovery, the WGC anticipates that central bank gold purchases will ease for the remainder of the year and are likely to fall below 2025 levels [1]. The report also highlighted continued outflows from gold-backed exchange traded funds (ETFs), as well as softer demand for gold bars, coins, and jewelry, alongside lower recycled supply [1].
Additionally, mining and metal sector flows remain weak according to iFlow data, which suggests fragile investor confidence in current gold price levels [1]. No specific forward-looking analyst opinions or market reactions were provided beyond the WGC’s expectation of softer official sector demand.
CONCLUSION
Central bank gold buying surged to a record in Q2 2024, but the World Gold Council expects demand to ease and fall below 2025 levels. Weak ETF flows and subdued investor confidence point to a cautious outlook for gold prices.