Global demand in gold held steady during Q2 FY21 at 955.1t, a year-on-year decline of 1% from Q2 FY20’s 960.5t.
According to the World Gold Council’s latest gold demands trends report, this has come as a result of increasing consumer demand being offset by “less bullish” investors.
The three months to June 30 saw a 56% year-on-year jump in bar and coin demand to 243.8t, with consumer bought jewellery climbing 60% to 390.7t in the same period.
However, net inflows of 40.7t during the quarter into gold exchange traded funds (ETFs) failed to offset the heavy outflows seen in the previous quarter.
Louise Street, senior markets analyst at the WGC, said: “As the global economic recovery continues, we have been encouraged to see consumer demand returning, with strong year-on-year growth in jewellery.
“But investment is a more complex picture. Despite evidence of strategic buying from both individuals and institutions, tactical investors had a more mixed impact in the first half of the year.”
She added: “Looking ahead, we expect continued improvement in the consumer elements of demand for the rest of the year.
“And while ETFs will most likely not repeat the record performance of 2020, the need for effective risk hedges and the continued low-rate environment supports our view that investors will add to their strategic allocations throughout the rest of the year.”