Published: 2022.08.08. Results of the gold market in the second quarter of 2022

Results of the gold market in the second quarter of 2022 - Vista previa

Compared to the same quarter of the last 2021, the demand for gold in April, May and June of this year decreased from 1,031.8 to 948.4 tons (-8.1%). In the most important market segments, there was a sharp drop in demand by 28%, especially in the investment sector.
In the especially important jewelry sector, in the second quarter, despite the announced growth from 456.2 to 484.4 tons (+6.2%), there were both pluses and minuses. Despite strong year-on-year growth, jewelery demand in the two most important sales regions, China and India, has evolved very differently.
While China experienced a lockdown-related decline in demand from 146.7 to 103.5 tons (-29.4%), India, on the contrary, showed a real boom in sales from 94.3 to 140.3 tons (+ 48.9%).
The investment sector did not please with its results: in the second quarter there was a noticeable decrease from 286.1 to 205.8 tons (-28.1%). The ETF sector was largely responsible for this negative momentum. After a massive inflow of 268.8 tons in the first quarter of 2022, almost 39 tons flowed out of gold ETFs in the second quarter.
In the Bars and Coins sub-category, there was only a slight decrease from 245.5 to 244.5 tons (-0.4%) compared to the second quarter of 2021, however, business in China (-34.8%) and India ( +19.7%) developed in completely different ways.
By the way, a decrease in demand for bars and coins from 44.7 to 41.2 tons (-7.8%) was also recorded in Germany, an important sales market in Europe. According to the WGC, in the second quarter, no country in the world had such demand for physical gold in the form of bars and coins.
At times like these, investors understandably take a particularly keen interest in the activities of Central Banks in the gold market. While their net precious metal purchases for reserves fell from 209.6 tons to 179.9 tons (-14.2%) in the second quarter, their interest in gold more than doubled in the first quarter.
Clearly, gold continues to enjoy an exceptionally good reputation among central bankers.
Negative values ​​were also observed in the relatively small sub-segment "Industry", as industrial demand for the reporting period decreased from 79.8 to 78.4 tons (-1.8%).