Global demand for gold in 2022 increased by 18% to 4,741 thousand tons, the highest since 2011, according to the annual report of the World Gold Council (WGC).

Purchases of gold by central banks of the world grew for the second consecutive year and reached 1,136 thousand tons. Regulators from developing countries, including Turkey and China, were the main buyers of gold.

“In 2022, central banks not only became net buyers of gold for the 13th consecutive year, but also purchased the second largest volume of the precious metal in the history of observation since 1950,” the paper noted.

Global market for gold

Investment demand for gold increased by 10% and reached 1,107 thousand tons. Including purchases of bars and coins increased by 2% – to 1.217 thousand tons, and outflows from gold-backed ETFs amounted to 110 tons, which corresponds to cash outflows of about $3 billion.

Gold use in the technology sector fell by 7% in 2022 due to lower demand for consumer electronics and totaled 309 tons. Annual gold demand from jewelry companies decreased 3% to 2,086 thousand tons.

Meanwhile, total gold supply in 2022 increased by 2% to 4,755 thousand tons. This included a 1% increase in gold production to a four-year high of 3,612 thousand tons.

WGC keeps a positive outlook for gold in 2023 amid continuing weak dollar, growing risks of recession and increased geopolitical risks.

Demand from central banks is more difficult to predict, but given the overall reduction in reserves, we can expect that purchases of precious metals by central banks around the world will be more moderate this year than last year, according to the report.

Earlier we reported that Oil continues to lose value little by little