Global Gold Demand Hits Record High in 2023: Industry Report

The World Gold Council has reported that total global gold demand, encompassing over-the-counter and stock flows, reached a record-breaking 4,899 tonnes in 2023.

Central banks contributed significantly to this surge, with demand reaching 1,037 tonnes, marking the second-highest figure in history. However, the report also highlighted that global gold-backed exchange-traded funds (ETFs) experienced an annual outflow for the third consecutive year, losing 244 tonnes in 2023.

In contrast, the Chinese market bucked the trend, witnessing an inflow of 10 tonnes of gold ETFs last year. This brought China’s total holdings of gold ETFs to 61.5 tonnes by the end of 2023. While global demand for gold bars and coins dipped by 3 percent year on year, there was an increase in jewelry consumption demand, totaling 2,093 tonnes.

The report attributes China’s economic recovery as a driving force behind the increased demand for gold jewelry, positioning the country as a significant growth engine for the global gold jewelry market.

The overall global gold supply saw a 3 percent year-on-year increase in 2023. Gold mine production also experienced a 1 percent year-on-year uptick, reaching 3,644 tonnes, as outlined in the report.