According to Ruth Crowell, CEO of the London Bullion Market Association (LBMA), strong gold demand has been observed throughout 2023.
Gold buying from central banks reached record levels in the first half of the year at 387 tonnes, and Crowell expects that demand from this sector will remain net positive through the second half of 2023.
“Available industry data from the first two quarters of 2023 reveal that demand for gold is at record levels,” Crowell was quoted by Kitco as saying. “Although Q1 demand was much stronger than Q2.”
She said that overall gold demand in the first half of 2023, including investment and jewelry, was 7% higher than in the same period of 2022. However ETFs recorded net outflows of 50 tonnes during the period.
“Specifically, the investment sector, which includes bars and coins, amounted to a total of 582 tonnes,” she argued.
According to Crowell, concerns about inflation and rate hikes by central banks led to gold trading in a $1850-$2000 per ounce price range through the first three quarters of 2023, but despite the weakness seen at the end of Q3, gold prices remain in a positive territory.
“U.S. and global inflation, and the rate hikes applied by the majority of central banks (with the exception of the Chinese and Japanese) to combat it, has proved to be a primary driver of the gold price throughout the year,” she said. “This price growth was predicted, although perhaps understated, via an LBMA survey of professional gold analysts conducted in January, which suggested an average price through the year of $1859.90.”
Theodor Lisovoy, Editor in Chief of the European bureau, Rough&Polished
