Global gold demand shrank 4 percent from a year earlier to 964 tonnes in the second quarter of this year due to slower inflows into gold-backed exchange-traded funds (ETFs), contributing to the lowest demand in the first half of the year since 2009, the World Gold Council said Thursday.
The latest World Gold Council report on demand trends said that inflows into gold-backed ETFs continued in Q2, although at a much slower pace compared with the high levels of 2016 and 2017. The inflows saw a decrease of 46 percent year-on-year, with holdings of North American-listed funds dropping by 30.6 tonnes.
Despite the Q2 decline, total global jewelry demand in H1 remained relatively unchanged at 1,031 tonnes. In the second quarter, the global demand for gold bars and coins was virtually unchanged at 248 tonnes.
Due to booming demand for smart phones, games consoles and vehicles, gold used in electronics continued to thrive. Q2 gold demand in the technology sector rose by 2 percent to 83 tonnes, the seventh consecutive quarter of growth.
According to the report, as the world's largest gold market, China saw a 7 percent rise in consumer demand in Q2, with jewelry demand up 5 percent to 144.9 tonnes and demand for gold bars and coins up 11 percent to 69.5 tonnes.